At a time of ecological transition, the marketing of electric cars has accelerated considerably in recent years around the world. According to figures from the Automotive Platform (PFA) and AAA Data, 165,106 new 100% electric cars were registered in 2021, i.e. 9.8% market share in France. In December 2021, electric even reached 15% market share, not far from diesel, which continues to decline with 17% of sales (71% in 2009).
Faced with the paradigm shift taking place in the automotive market, new players are appearing to occupy the various business segments of the sector. This is particularly the case of the French start-up Electra, which has embarked on the deployment of a network of ultra-fast charging stations in urban areas.
8,000 charging points in Europe by 2030
While 80% of electric vehicle users charge at home or at work, 20% remain to be covered. It is this segment that French society wishes to occupy by playing the role of “third-party investor” to answer “to calls for tenders from future partners, such as hotel chains, car park operators or even shopping centres”in order to install its charging stations there, explains Julien Belliato, co-founder and director of operations of Electra. “A station is an investment of between €200,000 and €600,000”he adds.
To rapidly grow its network of charging stations, the start-up must therefore face particularly costly investments. In this context, it completed a funding round of 160 million euros in June, just before the slowdown in fundraising in French Tech. This envelope should allow Electra to reach 8,000 charging points in Europe by 2030. The start-up must cross the bar of 300 charging points in France by the end of the year before accelerating to internationally, particularly in Belgium and Italy.
If the company has to pay costs to ensure the installation and maintenance of its terminals, and pay rent to its land partners, it is remunerated by invoicing energy (€0.44/kWh) to users of electric cars, “like a tank of gas”ironically Julien Belliato. “According to forecasts, there will be 9 million vehicles in France in 2030, compared to 700,000 to 800,000 today”, estimates the co-founder of the French start-up, which has 80 employees. Faced with the growth of the market, the latter is therefore optimistic for the future, with needs that should increase in the coming years, especially on long journeys and in certain urban areas.
However, the euphoria that animated the sector a few months ago was somewhat dampened by the energy crisis which caused a surge in electricity prices. However, Julien Belliato does not seem too concerned about the situation. “The current context is complex, but it must be understood that it is temporary. It’s not structural. In the long term, the cost of energy use of the electric vehicle will remain more attractive than the cost of energy use of the thermal vehicle”, assures the director of operations of Electra. However, a question remains as to the duration of this energy crisis. While waiting for this to find a way out, Electra intends to move up a gear to stay in the race against other start-ups in the sector, such as NW Storm, which raised 300 million euros in June.