Honeywell Is Part Of The Reason Why EV Fires Aren't Going To Last Forever

Fires in electric vehicles are unusual. Making them even rarer is what Honeywell International HON -0.03% wants to do.

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As EV technology is new, it is, in a sense, unknown. The mystery can inspire both dread and enthusiasm.

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The excitement is obvious. The SUV and truck of the year in North America for 2023 are both electric. Moreover, Tesla TSLA -3.04% (TSLA), the most valuable automaker in the world, is currently trading at 46 times projected 2023 earnings. Volkswagen (VOW3. Germany), which annually sells around five times as many vehicles as Tesla, is valued at less than seven times earnings.

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A large chunk of Tesla's price multiple rests on maintaining high excitement and low fear.

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Range anxiety, or the worry of running out of power far from home, is one EV phobia. The sector is quickly developing a charging infrastructure to solve that.

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Over 28,000 direct current fast-charging ports were available in America at the end of 2022, up from roughly 22,000 at the end of 2021. As part of President Biden's initiative to have EV charging available every 50 miles along U.S. highways, the federal government has made billions available for charging. More are on the way. With at least 5,000 additional ports, that translates to at least 900 highway charging stations. (Interstate highways in the United States total almost 47,000 miles.)

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Another worry that still makes national news is EV fires.

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Auto accidents were newsworthy when vehicles were new. According to Trade Algo, "automobile accident" was on the front page of the New York Times 316 times between 1910 and the end of 1919. The phrase twice appears in obituaries for David Rockefeller and Geraldine Ferraro between 2010 and the end of 2019. The stories didn't focus much on the accidents.

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In the United States, there are roughly 170,000 car fires each year. Only roughly 50 fires in 2022 involved EVs. Out of the roughly 250 million light automobiles on American highways, just about 2 million of them are battery electric cars.

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Although if some EV fires that occur as a result of flooding or accidents may appear unavoidable, one fire is eventually too many. The industry has always treated any safety issue in this manner. The advancements brought about by that approach have been substantial.

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According to The Detroit News, there were 65,000 cars in Detroit in 1917, the year the stop sign was first, and there were 7,171 collisions that resulted in 168 fatalities. At those rates, there would be about 28 million accidents and 650,000 fatalities in the United States today. Fortunately, the figures aren't even close. Over 40,000 people die in an estimated 5 million reported traffic accidents each year.

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Millions of lives in the United States have been spared thanks to seat belts, air bags, anti-lock brakes, and traffic laws. Battery sensing can now be added to the list of innovations that have saved lives in the business.

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The Sensing and Safety Technologies division of Honeywell is led by Sarah Martin and is based in Texas. The safety and productivity solutions sectors of Honeywell, which will account for almost $7 billion in sales in 2022, or about 20% of the company's overall revenue, include the sensing business.

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Her company leads the world in providing information on pressure, temperature, humidity, force, gas concentrations, and other things that require, well, sensing. Martin claims that his company has one of the biggest selections of sensor and switch portfolios available.

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In essence, switching technology indicates whether the refrigerator door is open or closed. Martin argues that this is a low-end application. Higher-tech solutions are the main focus of Honeywell.

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Her unit is currently collaborating with auto manufacturers to provide sensor systems that assist in identifying EV battery issues. A fire may break out if EV batteries heat up too much. The current technologies from Honeywell allow for early detection, which can help save lives. Individuals are able to exit the vehicle.

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Honeywell's process involves more than just recognizing problems. Identification, prediction, and prevention are the three pillars of Martin's technology development rubric. Auto manufacturers should eventually be able to completely eliminate battery-related issues thanks to Honeywell technologies.

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Because EV sales are expanding swiftly and the auto sector is so large, with annual sales of several trillion dollars, Honeywell has a significant opportunity. Martin describes the EV possibility as the biggest opportunity for her company that she can remember.

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Future stock gains for investors could result from that. While the S&P 500SPX +0.14% is down around 5% and the Dow Jones Industrial AverageDJIA -0.18% is flat, Honeywell stock is down about 9% year to date but up about 6% over the past 12 months.