Electric Cars and the Auto Industry

author: FutureCar Staff    

With the increase in EV inventories on dealer lots, the auto industry is facing various challenges. These challenges include concerns about driving range, vehicle reliability, price, the availability of electricity for charging infrastructure, charging time, the cost and lifespan of batteries, their environmental impact, the actual impact of EVs on reducing carbon emissions, statistics about lithium battery fires, problems with battery recycling and end-of-life management, and the potential end of the EV free ride with the Vehicle Mileage Tax (VMT) and separate meters for home chargers. These concerns may make it difficult to find buyers for EVs in the market.

Another problem for the automobile industry is the ethical and moral considerations of buying an EV. Most 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 green movement's impact on humanity's exploitations in these countries is discussed in the book "Clean Energy Exploitations" and highlighted in Michael Moore's documentary film "Planet of the Humans".

As government mandates push automobile manufacturers to reduce emissions, they are focusing on manufacturing more EVs in the coming years. This means that hybrids may become less common as manufacturers need to eliminate gasoline engines to meet emission targets. However, despite loading up the supply chain with EVs, there is a lack of demand from the public. The current profile of EV owners is highly educated, highly compensated, and often part of 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.

The lack of a used car market for EVs is another challenge for the auto industry. Currently, about 73% of car sales in the US are used combustion engine cars, while the EV industry has virtually no used car market. This lack of resale value, combined with the challenges of EV charging, may deter potential buyers from considering used EVs.

The distribution of EV ownership throughout the US is also a concern. Currently, about 40% of EVs in America are in California, with the remaining 60% spread across the other 49 states. This discrepancy raises questions about the availability of charging infrastructure in states outside of California. Additionally, the supply of electricity may not be keeping up with the growing demand. The UK, for example, is ahead of most countries in protecting its grid with Smart Chargers and Separate Meters for EV charging users.

In the UK, new home and workplace chargers must be "smart" chargers connected to the internet and have preset limitations on their functioning hours. Authorities can also impose randomized delays to prevent grid spikes. The UK Electric Vehicles (Smart Charge Points) Regulations 2021 require all home-installed EV chargers to be separately metered and send information to the Smart meter data communications network. This legislation allows for the potential charging and taxation of EV electricity at a higher rate than domestic electricity. It also enables the rationing of electricity for EV charging and the possibility of draining EV batteries into the grid if needed.

As new EV inventories continue to rise, there are challenges ahead for the penetration of EVs into the lives of the general public.

Ronald Stein is an engineer and senior policy advisor on energy literacy for CFACT. He is also a co-author of the book "Clean Energy Exploitations."

FutureCar Staff