Electric Cars and the Auto Industry

author: FutureCar Staff    

With the increase in new electric vehicle (EV) inventories on dealer lots, the auto industry is facing numerous challenges. These challenges include addressing concerns from potential buyers regarding driving range, vehicle reliability, price, availability of electricity for charging infrastructure, charging time, battery cost and lifespan, environmental impact, carbon emissions reduction, lithium battery fires, battery recycling and end-of-life management, the potential end of EV owners' free ride on highways without paying fuel taxes, and the possibility of higher rates for home chargers to stabilize the electrical grid.

Another problem for the automobile industry is convincing buyers of the ethical and moral implications of purchasing an EV. Many of the exotic minerals and metals required for EV batteries are mined in developing countries with limited environmental and labor regulations. This lack of transparency in the supply chain is explored in the Pulitzer Prize-nominated book "Clean Energy Exploitations" and Michael Moore's documentary "Planet of the Humans."

As government mandates push automobile manufacturers to reduce emissions, the industry is transitioning towards manufacturing more EVs. This shift may result in fewer hybrid vehicles as manufacturers strive to meet lower emission targets by eliminating gasoline engines in hybrids.

However, despite the increase in EV supply, there is still a lack of demand from the public. Current EV owners tend to be highly educated, highly compensated individuals from multi-car families with low mileage requirements for their second car. This profile is different from the majority of potential car buyers who may not have the same level of education or income. Mandating a switch to EV ownership and forced austerity may face resistance from those who rely on affordable transportation.

Additionally, the lack of a used car market for EVs presents a major problem for the industry. While historically, the majority of car sales in America are used combustion engine cars, the EV industry has yet to establish a significant resale market. This, coupled with the challenges of EV charging, makes buying a used EV less appealing to potential buyers.

The distribution of EV ownership throughout the nation is also a concern for the auto industry. Currently, 40 percent of EVs in America are in California, leaving the other 49 states with approximately 1+ percent of EV ownership per state. This discrepancy raises questions about the readiness of other states' charging infrastructure and their ability to support EV growth.

In the UK, where the demand for EVs is ahead of most of the world, the grid is being protected with smart chargers and separate meters for EV charging users. These measures help manage electricity demand and prevent grid spikes. The UK Electric Vehicles (Smart Charge Points) Regulations 2021 require all home-installed EV chargers to be separately metered and connected to the Smart meter data communications network. This legislation allows for potential higher taxation on EV charging and enables the rationing of electricity for EV charging if necessary.

As new EV inventories continue to rise, there are challenges ahead for the widespread adoption of EVs. Addressing concerns related to EV ownership and infrastructure, as well as ensuring transparency and ethical sourcing of materials, will be crucial for the auto industry to overcome these obstacles.

Ronald Stein is an engineer, senior policy advisor on energy literacy for CFACT, and co-author of the Pulitzer Prize-nominated book "Clean Energy Exploitations."

This article originally appeared at Heartland.

FutureCar Staff