Patent Trends In The Electric Vehicle Industry

The International Energy Agency has observed a rapid expansion of the electric vehicle (EV) market in recent years as a result of variables like greater performance, wider model availability, and enhanced range. Notwithstanding the epidemic, major auto markets saw a sharp increase in EV sales, which reached a record high of 6.6 million in 2021. Although developed nations like the United States of America are at the forefront of this business, emerging nations have not yet fully embraced it because of poor infrastructure and greater expenses. Governments, however, have worked to support the sector by providing grants, subsidies, tax breaks, and other financial incentives. Innovation has developed as a result of the expansion of this industry, with businesses competing globally to submit patents for new EV inventions.

Surge in Inventions

For electric vehicles and related technology and have also been led by Japan, Korea, Germany, Canada, and Australia.

The EV industry is becoming more and more popular for a variety of reasons, including the potential it presents as well as environmental concerns. Both smaller businesses and larger ones have prospered in this innovative climate. The transition away from conventional automobile technology led to an integration of EV technology, sparking numerous advancements in battery technology. For instance, the number of worldwide patent families for electricity storage increased by 14% between 2005 and 2018, according to the European Patent Office, with battery technology accounting for 88% of those increases. The main battery technology patent holders were Asian companies including Samsung, Panasonic, LG Electronics, Toyota, and Hitachi.

Some businesses attempted to patent two to three technologies at once, while others concentrated on just one. Between 2010 and 2020, China and the United States of America topped the list of countries with the most patent applications and the most thorough EV research. Patent applications 

The patterns of patent applications and patents granted offer insight into the changes taking place within this new business because patents are an effective indicator of technological advancement. A sizable number of patent applications were made for the braking system, steering system, and arrangement of propulsion in addition to battery technology, which is at the core of the electric vehicle (EV) sector. Chassis and Battery Arrangement are two areas that could transform both the EV and automotive industries, but they are still in the early stages of patenting.

Historically, there hasn't been much interaction between the automotive business and its rivals, suppliers, and creators. The EV industry, though, saw a change in this trend. The vastly varied technologies needed to build EVs create a network of businesses, entrepreneurs, and rivals. The needs of the EV business could not be met by only narrowing the vision to only the current technology. This was another factor contributing to the sector's enormous potential and increased investment levels. The automobile business has accepted the fact that because the technology needed for EVs is very different from what is typically used to manufacture products, those methods will not be adequate when serving the automotive industry.

Key Players, Startups, and Competition: 

In 2020, more than 18,000 patent applications were made, with an average grant rate of 50%, according to global patent trends in the electric vehicle (EV) sector. The enormous potential has also increased industry competition. The market's major participants are now aiming to protect their intellectual property as a result of innovative techniques.

The patent filing trends show that the overall filings are increasing; however, the sub-technologies have followed a different trend. For example, the Arrangement of Batteries has seen a downtrend in filings, whereas the Arrangement of Electronics and Arrangement of Propulsion has seen above-average growth. While most technologies have experienced either an increase or stagnancy in filing patents relating to EV technology, certain areas which are common to both the automotive industry and the EV industry, such as steering systems have been unaffected

Start-ups have played an important role in the development of the EV space and currently own diverse patents. There were start-ups like Sakti3 which led with 69 patents; NovaTorque with around 36 patents and Wireless Advanced Vehicle Electrification (WAVE) with around 25 patents. Most of these start-ups were acquired by major players like Dyson and Ideanomics. A report analyzed the various avenues start-ups are choosing in order to protect and develop their intellectual property. There is a core focus on battery charging systems with Dcbel Inc., Ze Way SAS, and Fermata LLC leading the way.

Broad Patents

The popularity of EVs has also given related technologies a chance to advance. For instance, patent applications for EV charging stations are increasingly popular. The filing of too broad patents is a typical trend or approach being used in the race to patent this new technology, though. In order to obtain greater protection, a broad patent maintains the claims technically ambiguous. They purposefully exclude technical information about the idea, are unclear about specifics, and may even fall short of offering answers. This is the key reason why the patents were denied or are still pending. According to the court's ruling in ChargePoint, Inc. v. SemaConnect, Inc., the claims pertaining to a wireless vehicle charging station were invalid as patents because they were too abstract and imprecise. When the necessity for broader protection becomes crucial in this competition, many patent applications also succumb to this sin.

Indian Trends In The EV Space

 Like most other global players, India has been keen to uphold its end of global climate change agreements and maintain energy security interests. The Indian government launched the FAME  (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) program in 2015 and simultaneously approved the PLI (Product Linked Incentive) Scheme. Such incentives have led to increased production and demand for EVs. It is a common phenomenon that such an environment of growth leads to innovations which are also reflected in the steady rise of EV and allied technology patents filed in India. The primary assignees or applicants in India are Honda Motor Co., LG Chem Ltd., Toyota, TVS Motor Co. Ltd., etc. Lithium batteries, which are an indispensable component of EVs and have been at the apex of research and development globally, have seen an upsurge in India only recently. The primary assignees or applicants here, too were Honda Motor Co., Toyota, and LG Chem Ltd.

India has a heavy reliance on public transport, due to which innovation for larger passenger movement, with electric buses, three-wheelers, and two-wheelers, is at the forefront. Manufacturing EV components and setting up a new base for the same does not seem plausible in the current environment; therefore, there may also be a focus on using pre-existing assembly lines of conventional vehicles to also manufacture EV components. Daimler AG’s patent, for example, is an example of how a conventional truck would be converted into an EV.

The Parliamentary Standing Committee published a report on Electric and Hybrid Mobility in India. It was noted in the report that India did not manufacture lithium-ion batteries and was reliant on the international market for its EV technology needs. While major economies spend an average of 5-6% for their research and development on technological advancements, India merely spends less than 1%. One of the key recommendations for this was to improve research and development to promote indigenous manufacturing and reduce dependency. This is a fundamental step to ensure increased innovation, consequently resulting in increased patent filing trends.

Conclusion

The EV boom is here to stay, and the race is bound to get more competitive. The global trends indicate fast growth with a focus on research and development. While some companies rely on open-sourcing their patents, the majority are using diverse strategies to protect and hone their IP development path. Parallelly, India is slowly but surely joining the race with the government’s goals for the future, pushing for innovation. The patent trends of the future, specifically post the break that occurred due to the pandemic, will indicate how the EV sector bounces back and at what rate. The patent knowledge will inadvertently become more mature with the competition that key players and start-ups bring about. Patents in the EV space are now key clues to gauge the momentum at which the industry is set to grow.