MAPNA Group President Mohammad Owliya notes that the electrification of vehicles is among the top priorities in Iran.
Speaking with a live radio program on September 17, 2023, Owliya briefed on the efforts and achievements of the conglomerate in the realm of electrification.
“Given environmental concerns, the development of electric vehicles is considered a priority in the country,” he stressed.
Promoting electric vehicles was crucial for the country’s environmental goals, he said, noting that MAPNA Group is involved in the development of electric vehicle engines and infrastructure, such as charging stations.
Providing a general background, Owliya said that MAPNA Group has been active in the energy sector for thirty years, primarily focusing on thermal and renewable power plant projects. The Group has also been involved in other energy sectors like oil and gas for the past fifteen years with a main focus on producing strategic and technological equipment for the oil and gas industry, he added.
MAPNA Group, he maintained, has been active in the transportation industry, particularly the railway sector, for fifteen years. This industry has connections and dependencies with the energy field, as rail transportation is seen as an energy-efficient mode compared to road transportation, Owliya added.
In the past five years, MAPNA has also been working on electrifying road transportation, such as electric buses and cars, he said.
Energy efficiency is at the core of MAPNA’s development in these fields, he said, adding that the goal for the coming years is to minimize energy consumption, neutralize carbon dioxide emissions, and reduce pollutants.
Renewable energy is seen as the solution to achieve these goals, although it does come with its own challenges and pollutants, however, renewable energy is much cleaner compared to fossil fuels, and in Iran’s case, natural gas plays a significant role in electricity production due to its low pollution levels, added the conglomerate’s top manager.
Electrification
Regarding MAPNA Group’s involvement in the electrification of transportation, he clarified that they are not automobile manufacturers. Instead, they focus on producing equipment for electric transportation and developing technologies to convert gasoline cars into electric vehicles or produce new electric cars.
MAPNA also plays a role in infrastructure development, particularly in addressing the issue of EV chargers, he said.
In the realm of gasoline cars, infrastructure concerns include the availability of gas stations and the logistics involved. Similarly, in the electric field, infrastructure involves the provision of charging stations, software and hardware, connections, batteries and other related services, he added.
Transition to EV takes time
Without a well-established infrastructure, people will lack confidence in using electric cars, even though it is possible to charge them at home, Owliya said, adding that however, home chargers have technical and legal limitations that need to be resolved in the future.
“It is important to recognize that electric cars will not suddenly replace gasoline cars as this transition takes time” he stressed.
“However, the demand for electric cars is increasing both worldwide and in Iran. This demand is being addressed through technological advancements made in the last five years, as well as investments in the sector,” Owliya added.
EV battery development in MAPNA Group
Elsewhere in the interview, he noted that producing equipment related to engines is relatively “well-established and localized,” however, the same cannot be said for battery production.
While Iran has the necessary resources for battery production, establishing a complete supply chain from raw materials to finished products will take time, he said, adding that it is more cost-effective to import some parts of the chain while producing advantageous components domestically, which also leads to job creation.
MAPNA Group recognized the need for battery production due to the growing demand for electric vehicle technology and the requirements of power plant storage and other applications, Owliya confirmed.
Investments in this area began approximately two years ago, with the purchase of machinery, he said, noting that once construction is completed, knowledge is mastered, and equipment is fully operational, battery production will commence. “In Iran, research and development efforts are underway for self-driving and electric cars, but significant infrastructure development is needed before commercialization can occur not only in Iran but also across the globe.”