Creating an Ecosystem of Change – How the German company PEM Motion is driving innovation in the US sustainable mobility market

BlogEnergyCreating an Ecosystem of Change – How the German company PEM Motion is driving innovation in the US sustainable mobility market

Responsible for 24% of global CO2 emissions, the transport and mobility sector is still one of the major contributors to global warming. There is no doubt: Our mobility system needs to become more sustainable to fight climate change.

PEM Motion USA, Inc. is supporting the clean mobility transition by bringing together talented consultants, engineers, researchers, industry thought leaders, and companies to facilitate the development of groundbreaking e-mobility solutions that are affordable and can be industrialized rapidly. In 2019, PEM Motion helped launch the California Mobility Center based on their tried-and-true innovation ecosystem approach together with the Sacramento Municipal Utility District (SMUD) and other partners.

As partners and supporters of PEM Motion’s activities here in the US, we wanted to learn more about their vision and role in shaping the future of mobility.

GACC West: With the rising impact of climate change and the lingering effects of the pandemic the pressure on the mobility industry to become more sustainable has grown immensely. Why do you think the industry needs more impulses for innovation?

PEM Motion: Unfortunately, grand visions are far too often defined by large expenditures, high budgets, and long commercialization times. The notion is that a product can only be successful if it is perfect. This attitude has become particularly widespread in German industry and society. The consequence is that technological innovations in areas associated with uncertainty come to a standstill. Companies play it safe instead of taking risks.

Especially with the rise of highly customized vehicle designs as a defining feature of the new age of mobility, making the commercialization journeys of these new solutions fast and affordable will be a major driver for innovation in the mobility market.

GACC West: How can PEM Motion support innovation? What solutions do you offer and why has your approach been so successful?

PEM Motion: We accompany our customers from initial ideation to series production. Our activities range from product development and production planning for alternative, sustainable drive components such as battery cells and electric motors to consulting on infrastructure projects and the industrialization of mobility products. Our customers include automotive OEMs as well as suppliers, startups, and the public sector.

Maybe most importantly, we bring these different groups together in innovation ecosystems with the goal of accelerating the commercialization of new sustainable mobility solutions.

Our consulting and engineering services cover the entire scope of innovative product development. In addition, we combine established methods from long-term industry experience with the latest innovations from research through our strong ties with academia.

What helps us stand out is our expertise as ongoing founders of our own clean-mobility spin‑offs. We are not simply a service provider or supplier to clients, but a partner that “gets” the typical pitfalls for hardware innovators. In addition, our experience with technological due diligence can help startups attract investors who may lack hardware experience.

GACC West: Since 2019, you’ve been building an ecosystem here in the US as well. Why did you think it made sense to expand across the Atlantic?

PEM Motion: For companies like us, California is an obvious choice to set up shop. Hardly anywhere else in the world are the focus on sustainability, entrepreneurial spirit, and the investor community as tightly interwoven as they are here.

Entering California exposed us to new experiences and viewpoints. Bringing these together tends to create value beyond the sum of its parts. This is the power of ecosystems […]

[…] and was the idea behind the Aachen Ramp-up Factory and our global network of similar facilities, including the California Mobility Center here in Sacramento.

GACC West: How did you go about setting up shop and building your network here in the US?

PEM Motion: As a German company coming to the US, the GACC was naturally one of our first points of contact. Just like we recognize the value of ecosystems for clean mobility innovation, it was clear that their network would be invaluable for entering the US market.

Beyond providing access to professionals who helped us navigate the formalities in setting up a US business entity, the GACC also connected us to like-minded individuals and companies. Talking to contacts who had taken a similar leap across “the pond” helped shape our vision, strategy, and operational approach towards entering the US market. Now as we just celebrated the second birthday of PEM Motion USA, Inc., these contacts continue to be a valuable source of support and inspiration, as are the events hosted by the GACC.

GACC West: What are some of the biggest trends you foresee for the mobility market in the US? What should the players be prepared for?

PEM Motion: We see three lesser-known innovations besides electrification, connectivity, and automation, that we believe will be just as influential in shaping the future of the global mobility market.

1. Re-X (reuse, remanufacturing, and recycling of batteries)

The first one is the reuse, remanufacturing, and recycling of batteries from mobility applications. Re-X aims to utilize the value remaining in these batteries, either by extending their useful life or recovering resources. Both areas are currently underdeveloped and require significant process and product innovation throughout the batteries’ entire life.

2. New Business Cases

Alternative business cases and new models of ownership are also needed for the new age of mobility. Companies up and down the vehicle supply chain will have to think about new products and services they can offer as technology and customer preferences are changing rapidly.

3. Customization and individualization

Customization and individualization will also be defining features of the future of mobility. Electric vehicles will be tailored to their specific applications. Driven by financial and environmental considerations, this trend will increase competition thanks to simplified vehicle design, and new, flexible production methodologies.

Want to learn more?

If you’re interested in learning more about PEM Motion or the electrification of mobility, join our virtual conference “The Electrification of Personal Transport” on November 11, as we discuss the future of transatlantic electric mobility with the team of PEM Motion USA and other German American mobility innovators.


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