Electric Vehicles (EVs) are redefining what it means to drive. Today’s EVs are packed with high-tech AI systems and advanced software that turn these machines into data-processing dynamos, gathering information from everything around them to optimize battery life and range, enhance safety, and personalize your ride. But behind every “smart” feature is a complex landscape of patents and intellectual property (IP) that ensures these innovations can reach the road. We teamed up with our friend and innovation colleague, Georgios Stathousis, Director at Auto2x, to provide a nice overview of the AI behind EVs. Here’s a look at how AI, software, and IP are not only accelerating EV technology but also building the future of connected cars.
EVs today are so much more than just “cars” - they’re essentially computers on (really fast) wheels, managing real-time data through a network of electronic control units (ECUs) and getting software over the air updates (SOTA). These ECUs, sometimes called the “brains” of the car, control nearly every function - from battery life and regenerative braking to autonomous driving and emergency alerts. To put this in perspective, a modern EV that you might see on the road beside you on your way to work has over 100 million lines of code powering it, dwarfing the 14 million lines found in a Boeing aircraft!
With each mile driven, EVs gather data on battery health, energy efficiency, and even driver habits. This data is then fed back into the system, allowing manufacturers like Tesla to issue SOTA updates that improve features across their entire fleet. But those lines of code, AI models, and sensors are duly protected by IP rights to safeguard these innovations from competitors, creating a landscape where patents are crucial to staying ahead.
From the energy-efficient “smart” batteries to autonomous navigation, EV innovations are backed by years of research and many are protected by patents. Patents give companies the exclusive rights to their inventions, allowing them to advance unique features and protect the competitive advantage they provide. In fact, EVs now hold some of the highest patenting activity in automotive tech, with industry giants like Tesla, LG Chem, and Panasonic leading the way in battery innovation. Asian companies such as Toyota Motor Corp. and BYD hold the lion's share in EV patenting activity, as well as battery cell production, which shows their leading role in innovation and supply chain.
Companies holding standard essential patents (SEPs) have an even bigger edge in monetizing the shift to EVs. Currently, there are only eight companies in the world that hold international SEPs for EV charging, including LG Innotek, GE and Siemens.
One of the greatest challenges in EV development has been optimizing battery life and efficiency, as they directly impact electric range - a key concern for EV owners. EV batteries are impacted by extreme temperatures, driving behavior, and the availability of charging infrastructure. Innovations like Tesla’s battery preconditioning, which allows Tesla drivers to precondition the battery for cold weather driving directly from their phones, are patent-protected, preventing others from replicating this advantage.
Companies are racing to file patents not only for more efficient batteries but also for better battery management systems that optimize range. With AI at the helm, these systems monitor and predict battery performance, improving energy consumption rates and extending battery life. There’s no shortage of AI-related inventions in EVs, making each vehicle “smarter” over time by recognizing patterns, preempting failures, and even predicting charging needs; capabilities protected through thorough IP strategies.
Imagine if your car could update itself overnight, adding new features without a visit to the dealership. That’s the magic of over-the-air (OTA) updates, which rely heavily on patented software and AI. These updates can range from fixing software bugs to enhancing vehicle performance and adding custom features like BMW’s personalized EV sounds. OTA updates are a powerful tool for carmakers, not only enhancing customer experience but also protecting IP by continuously evolving the software in ways that competitors can’t easily replicate (or are statutorily barred from doing so).
Patents in this area cover everything from the communication protocols that facilitate secure updates to the user interfaces that make it easy for drivers to select features on demand. This constant innovation and customization are key differentiators that patents help protect, providing manufacturers with unique selling points.
For many EV owners, “range anxiety” (i.e., the fear of running out of juice) and charging infrastructure remain top concerns. This is where innovations like real-time route planning and bi-directional charging step in. Patented AI systems allow EVs to locate the nearest available charging stations and estimate the most efficient route to reach them. Meanwhile, bi-directional charging, used by companies like Ford and Hyundai, lets EVs not only charge up but also send energy back to the grid, providing power to homes or other devices during emergencies. This capability is shielded by patents, as it involves complex algorithms and energy management systems unique to each brand.
Today’s EVs aren’t just high-tech; they’re highly personalized. Patented AI systems now allow cars to learn drivers’ preferences, adjust settings based on historical data, and even provide predictive maintenance alerts. For example, some EVs use AI to monitor battery health and energy consumption patterns, alerting drivers when the vehicle needs maintenance or when certain driving habits could improve efficiency.
This predictive power is backed by a web of patents in machine learning, data analytics, and user interface design. These patents ensure that carmakers retain exclusive rights to features that make the EV experience unique, from customizing driving modes to automatically adjusting climate control.
Generative AI is even making its way into EVs, bringing with it exciting possibilities and IP challenges. It might seem super futuristic, but try imagining a car that can understand natural language, generate real-time responses, and interact with smart home devices. You may be surprised to learn like automakers, like Mercedes-Benz and Audi, are incorporating generative AI in their infotainment systems, offering conversational capabilities that feel more intuitive and human. Patents protect these AI-driven voice assistants, ensuring that competitors can’t mimic the exact models or user experiences.
As generative AI evolves, so do the associated IP concerns. Protecting not only the AI models but also the data they’re trained on will be key for automakers who want to maintain a competitive advantage while addressing the growing consumer demands for privacy and security. We spend a lot of time in our vehicles - have plenty of conversations with others and, at times, even talk to ourselves. Is the future one where our cars are constantly listening?
As EV technology advances, so does the patent landscape. Key IP trends include a push for more sustainable innovations, such as battery recycling, and advanced energy storage. Car manufacturers and tech companies alike are ramping up patent filings in areas like wireless charging, vehicle-to-grid technology, and autonomous vehicles.
The stakes are high. A report by McKinsey predicts that by 2030, the global automotive software and electronics market will reach $462 billion. To capture this market, companies are building robust IP portfolios, partnering with semiconductor giants like NVIDIA, and setting the stage for the next phase of competition: building the smartest, most efficient, and most connected EVs.
Patents and IP aren’t just about protecting technologies; they’re defining the winners in the EV race. Every software update, every AI-driven decision, and every ounce of battery optimization relies on a foundation of protected innovations. As EVs continue to evolve, the role of IP will be critical in shaping the future of transportation, ensuring that the benefits of these technological advances are felt by drivers and companies alike.
The EV revolution is so much more than just “going electric”; it’s about going smart, efficient, and innovative. There’s a delicate balance between innovation, IP, and data security / privacy. Still, we think the future is brighter than never.
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