Welcome back everyone, I'm Jordan Geisigee and this is The Limiting Factor. In October of last year, at the CyberCab event, Tesla teased wireless charging technology for the CyberCab, which generated a lot of questions and requests for me to do a video on the topic. As usual, what I expected to be a quick 10 minute video expanded into well over half an hour of content, so rather than doing one video on the topic, I'm going to break it down into two. Today's video will cover the major questions, such as the basic system design, cost, and efficiency. While the next video or two videos, I'll get more into the gritty details like safety, interoperability between vehicles, and the effect of vehicle position for charging rate and efficiency. Before we begin, a special thanks to my Patreon supporters, YouTube members, and Twitter subscribers, as well as RebellionAir.com. They specialize in helping investors manage concentrated positions. RebellionAir can help with covered calls, risk management, and creating a money master plan from your financial first principles.
For this video, I'd also like to thank Jeremy McCool of Hevo. Jeremy generously provided technical and cost information about Hevo's wireless technology, which is likely very similar to Tesla's wireless charging technology. So even though this video is about Tesla's wireless charging, I'll be making heavy reference to information from Hevo's technology, because so far, we know very little about Tesla's wireless charging system. As usual, this is my best attempt at communicating a complex topic, so any errors in the video are my own, and not related to advice from Hevo. Let's start by taking a look at the general architecture and technology for wireless vehicle charging.
The first component of Hevo's wireless charging system is the power station. Although you might think this is similar to a typical AC home charger for an EV, it's very different. An AC home charger is a relatively simple device that communicates with the vehicle during the charging process. It's basically a smart power outlet, and the onboard charger in the vehicle is what actually does most of the heavy lifting to charge the vehicle. That's because it contains all the hardware to convert AC power from the grid to DC power that the vehicle can use.
As this image from Y Tricity shows, the power station for wireless charging, on the other hand, contains a rectifier PFC or power factor correction to convert from AC to DC and an inverter to convert that DC power back to high frequency AC. At first glance, that seems like a lot of unnecessary conversion because the power is ultimately going from AC to AC, but both the rectification and inversion are necessary to create power of the right frequency and waveform that can be transmitted wirelessly. As a side note, the rectification and inversion also happen with wired charging, but it happens on the onboard charger. That brings us to the next two pieces of hardware for the wireless charging process. The power pad and vehicle pad.
The power pad transmits energy to the vehicle pad to charge the vehicle. This is similar to the wireless charging that mobile phones use, but at a larger scale and more sophisticated. Both the wireless charger on your phone and on an EV work on the same basic principle. Induction. What's that mean? Inductive charging involves two copper coils, one in the charger and one in the receiver. When electricity passes through the charging coil, it creates a magnetic field between the two coils and induces a current in the receiver coil, which then charges the device. The difference between the coils in a cell phone and the coils in an EV charger is that the coils in the EV charger are precisely tuned to resonate, which is called resonant inductive charging. When one coil vibrates, it causes the other to vibrate, resonating in the same way a tuning fork might in response to the right sound frequency. This allows resonant inductive charging to transfer energy over greater distances than basic inductive charging. While the wireless charger in your phone can only charge over a distance of a few millimeters and requires precise alignment, wireless chargers for vehicles can work at 10-25 centimeters or 4-10 inches and even through obstacles. More on that in the next video.
Getting back to HIVO's wireless charging system, once the power is transferred across the air gap between the wireless charging pads, the battery adapter converts the AC power back to DC power for the vehicle's battery pack. Now that we have a basic understanding of the general architecture and technology for wireless vehicle charging, let's take a closer look at the individual hardware components. Their features size, cost, and performance. HIVO's power station and power pad provide 11 kilowatts of power and they're targeting a price of $1,200. That means the wireless home charging equipment is significantly more expensive than a typical wired charger of the same power level. Tesla's wall connector, for example, has a price of $420. However, the power station supports bi-directional charging, which means HIVO's wireless charging system can reverse the flow of electricity to draw on the vehicle's battery pack to supply energy to the home and possibly eventually sell energy back to the grid. So in terms of functionality, it's actually similar to Tesla's power share home backup bundle, which is $2,500, but it'll cost less than half as much at around $1,200. Lastly, with regards to efficiency, the rectifier PFC and inverter in the power station each see losses of about 1-2 percent, for a total of 2-4 percent of the energy being lost on its way to the vehicle.
Moving along to the charging pads, the power pad is the size of a large pizza box and is less than 2 inches thick. Although it seems simple, it's packed with technology. That's because the copper coil it contains has to be precisely designed to shape and direct the magnetic field for efficient charging, while also being able to withstand every type of abuse. For example, the power pad can take up to 20,000 pounds of pressure and years of exposure to rain, heat, and ice, but it had to mostly be made of non-conductive materials to avoid interfering with the inductive charging. To achieve that, it took a number of engineering solutions such as embedding the copper coil and epoxy. As for the vehicle pad, it doesn't have to be as robust as the power pad, but it does have to be lower profile and more compact so that it can squeeze up under the vehicle without affecting ground clearance and aerodynamics. That's more like the size of a medium pizza box rather than a large pizza box and less than half an inch thick rather than 2 inches thick. Lastly, with regards to efficiency, the coil-to-coil losses between the power and vehicle pads is 1-2%.
The last component to discuss is the battery adapter, which provides power conversion from AC to DC on the vehicle side. There isn't much more to add about that component. However, while we're on the topic of charging equipment on the vehicle side, it's a good time to talk about how much it costs to manufacture a vehicle that's capable of wireless charging. Typically, onboard wired charging equipment costs auto manufacturers about $3 to $500 per vehicle. Heavos wireless charging equipment will cost about $2 to $300, which includes the vehicle pad and battery adapter. That is, on the vehicle side, for 11 kilowatts of charging capacity, the cost of wireless charging equipment may actually be less than the cost of wired charging equipment. Why is that? Because wireless charging off-load some of the power conversion hardware from the vehicle to the power station, as well as the hardware and cabling involved in the charge port. Lastly, with regards to efficiency, the battery adapter sees losses of about 1-2%.
Now that we've covered the efficiency of each component of Heavos wireless charging system, let's take a look at how the end-to-end efficiency compares to wired charging. The image on screen is from third-party certification of Heavos system from 2020. It shows an end-to-end efficiency of 90.6%. Now, four years later, Heavo claims to be achieving a peak efficiency of 93%. However, the reason I'm using the older test results on screen is that new third-party testing still needs to be completed and published to verify the higher 93% clang. But let's assume that the numbers Heavo is providing are correct, because other wireless charging companies, like the one Tesla temporarily acquired Wifurian, made similar clangs, and Tesla and Elon have confirmed that wireless charging has comparable efficiency to wired charging. If Heavos claim of 93% is correct, their wireless charging efficiency is close enough to the 97-98% efficiency of wired charging to be considered a viable alternative. And that efficiency will of course continue to increase over time as the technology matures.
Furthermore, if Heavos power station is connected directly to a DC power source, such as solar panels, the power station bypasses the need for any solar inverter because the power station contains an inverter. That can save another 1-2% inefficiency that might otherwise be lost to converting between current types in a battery storage system. That means when connected to DC power, Heavos wireless charger is capable of end-to-end efficiencies of up to 95%, just 2-3% shy of a wired charger. Either way, whether wireless charging is 3% or 5% less efficient than wired charging, the efficiency losses are well worth the benefits of wireless charging.
Before we get into that, why did so many people believe that wireless charging for EVs was significantly less efficient than wired charging? That is, they were expecting efficiency in the 70-80% range rather than above 90%. First, because the wireless chargers for mobile phones that most of us are familiar with often have efficiencies as low as 70%, and rarely exceed 90%. That's because they use technology that's much less sophisticated. Second, because it's only been in the last few years that wireless charging for EVs has started to close the gap with wired charging. That is, the efficiency improvements have been more rapid than expected.
On that note, what's behind those rapid improvements? Unfortunately, that information appears to be proprietary, and I couldn't find public information on the topic, but as far as I can tell, it boils down to two key factors. First, up until about 5-10 years ago, resonant inductive charging for EVs was still a relatively undeveloped technology, leaving significant room for optimization. For example, improvements to the design of the copper inductive coils that shape the magnetic fields around the charging pads have significantly boosted efficiency. Second, wireless charging is writing on the coattails of a number of cost and efficiency improvements brought about by the demand and production scaling of hardware like data center switches and inverters for EVs.
Those improvements were thanks to, for example, better semiconductor materials like silicon carbide and better dielectric materials for capacitors. However, that's speculation on my part. If you have better or more accurate insights, please share them in the comments below. A moment ago, I said that the efficiency losses of wireless charging, which are within a few percent of wired charging, are worth it. Why is that? First, wireless charging is perfect for a cybercab because it eliminates the need for an attendant, human or otherwise, to plug the vehicles in. According to Hevo, the all-in cost for charging attendants for EV fleets can be up to $100 per hour.
Second, for a given charging power, wireless charging accelerates charging times. That's because as soon as the vehicle pulls into a charging stall, the charging starts. That's as opposed to a typical EV, where the driver has to get out of the vehicle, walk to the charging pedestal, open the charge door, plug in the charging cable, and wait for the handshake to occur between the charger and the vehicle. And for self-driving fleets, it would take additional time for the charging attendant to walk over to the vehicle and plug it in. Overall, thanks to removing those steps, Hevo estimates that wireless charging would save about 3 minutes per charging session. The third cost savings for wireless charging is reduced maintenance costs. The first thing to break on almost any wired electronic device is the cable.
With a wireless charging pad, there's no cord to flex and break from repeated use, or to crack from years of exposure to the elements and sun. Fourth, on that note, in the summertime, charging cables exposed to the baking hot sun see increased resistance due to the heat, which can reduce their efficiency. That's as opposed to the wireless charging cables, which can be buried and the charging pad, which will be in the shade of the vehicle and protected from the heat, which on hot days may help close some of the efficiency gap between wired and wireless charging. Fifth, charging cables are easy to steal and frequently are. A power pad can be embedded in concrete and take 20,000 pounds of load, so it's quite durable and theft resistant.
And even if the power pad isn't embedded in the concrete and was stolen, tearing it down to get at the copper in the induction coil would be no easy task because it's embedded in hard epoxy. Sixth, wireless chargers take up less space than wired chargers. That's because with wireless chargers, much of the charging equipment is buried. Hevo estimates that wireless charging makes room for up to 10 to 20% more charging spaces for a given parking area. Seventh, and finally, wired charging cables aren't as human friendly as wireless charging. That's for two reasons. First, DC fast charging cables can be bulky, and for some people, particularly the elderly or disabled, handling several feet of that cable can be difficult.
Second, people don't often put the charging cables back in their holster, or they fall out, and the cables are left unplugged and laying on the ground, which is of course a tripping hazard. In public areas, wireless charging can be flush mounted or buried in the concrete, which can reduce those tripping hazards and therefore potential injuries and lawsuits. Before I close out the video, let's take a look at the potential for more powerful wireless chargers. Earlier, we explored Hevo's 11-kilowatt home charging system. Hevo has also collaborated with Oak Ridge National Laboratory to test systems capable of delivering up to 300 kilowatts. While impressive, the additional wireless charging power does come with additional equipment costs. According to Hevo, on the vehicle side, 50-kilowatt charging equipment would cost $600 installed, and 350-kilowatt would cost $800. That is, several times more expensive than an 11-kilowatt system.
Why? Because at higher power levels, a larger and or more complex copper induction coil would be required. However, on the charging infrastructure side, higher power levels for wireless chargers would be cheaper than for wired chargers. That would cost $4,000 or less for each 50-kilowatt stall, and $7,000 or less for 350-kilowatts. Tesla's superchargers cost about $40,000 each, or 5-6 times more expensive than the charging equipment would be for a wireless charger. That is, the price of a Tesla-wired supercharging system and Hevo wireless supercharging system would, overall, be comparable after taking into account all the vehicle and infrastructure side costs.
That's because with wireless supercharging, the vehicle side costs would be more expensive per vehicle, but the cost of the supercharger itself would be significantly cheaper. However, at least for the time being, due to the higher per vehicle costs, wireless supercharging may not be as viable as wireless chargers that are in the 11-50-kilowatt range. But that's perfectly acceptable because wireless supercharging isn't needed for most use cases anyways. Let's take a look.
First, for private use cases, 80% of vehicle charging occurs at home, and most of those vehicles are parked for 95% of the day. Second, according to Hevo, most fleet operators are looking for about 25-kilowatts of power because it'll serve 80-90% of their needs. That's because fleet vehicles, at minimum, usually have several hours of downtime during off-peak periods where they're parked. That is, the 25-kilowatt charging power that Tesla teased for their wireless charger is right in line with industry expectations.
That was just a tease, and it may be capable of more, but it wouldn't be necessary. That's especially true for the cybercab, which will likely have a battery capacity of around 40-kilowatt hours or less. At 40-kilowatt hours, 25-kilowatts would allow for about a one-hour top-up with a standard duty cycle of 10-70% or 20-80% state of charge. Furthermore, the quote-unquote downtime for the cybercab won't necessarily be downtime. That's because when the vehicle is parked and charging, it could be capable of performing two other tasks that generate revenue.
First, distributed AI cloud compute with its AI chip. And second, if Tesla's wireless charger is bidirectional, serving as a distributed grid storage battery pack. If each cybercab is parked for even just a few hours a day, and they will be, 25-kilowatts is enough to both run the AI compute, charge, and provide pulses of energy back to the grid when needed. So the 250-kilowatts of power that a typical supercharger provides would just be overkill and inefficient from a capital perspective. Third, wireless supercharging would really only be needed for long-distance trips, where a customer wouldn't want to wait an hour for the vehicle to charge at 25-kilowatts before resuming the trip.
However, less than 2% of the trips the average person takes are over 50 miles, and the cybercab will be capable of around 200 miles of range. That means a small fraction of the cybercab trips, probably less than 1%, would actually fully deplete its roughly 200-mile range battery. So in my view, adding hundreds of dollars of wireless charging equipment to each cybercab so that customers wouldn't have to wait an hour to charge, for one trip in 100 may not make sense. There may be other ways to serve those customers that are more capital efficient.
For example, the passenger could opt for a long-range vehicle capable of hundreds of miles of range, switch cybercabs every few hours for each leg of the trip, or opt for a vehicle that's wired supercharger capable that they could plug in themselves. But of course, I'm certainly open to being wrong here. For example, what if Tesla found a way to implement wireless supercharging for a smaller premium than Hevo's suggesting? In that case, they could put it on every vehicle. But even if it were cheaper than Hevo is indicating, it would still likely be more expensive and heavier than a lower powered system.
There's always a cost to more power, and a cybercab is about achieving the lowest cost per mile. In summary, for most use cases, even at this early stage of commercialization, wireless charging is comparable in both cost and efficiency to a wired charging system. There is a small efficiency trade-off for wireless charging, and at higher charge rates, it can increase the cost of the vehicle. However, for a vehicle like the Cybercab, the small efficiency trade-off is worth it, because wireless charging is going to save far more money in other ways, such as lower maintenance costs, lower operational costs, and greater capital efficiency.
And as for the economics of wireless charging being optimized for smaller chargers, it won't be a big deal for vehicles like the Cybercab because it's going to be parked for several hours a day anyways, and it may even be able to generate revenue while parked from cloud computing services or grid storage services. That's all for the day. In the next video of the wireless charging series, I'll dig deeper into the more nuanced details of wireless charging, such as how precise the charging pads need to be aligned, safety issues, the future of wireless charging, and other use cases like the Cybertruck and Optimus.
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