Electric Cars and the Auto Industry

author: FutureCar Staff    

With the increase in new electric vehicle (EV) inventories on dealer lots, the auto industry faces numerous challenges. These include concerns about 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, end-of-life management, the potential end of EVs' free usage of highways without fuel taxes, and the possibility of separate meters for home chargers leading to higher charging rates for EV owners.

Another challenge for the automobile industry is convincing buyers that purchasing an EV is ethical, moral, and socially responsible. This is due to the fact that the exotic minerals and metals needed for EV batteries are often mined in developing countries with limited environmental and labor regulations.

A book titled "Clean Energy Exploitations – Helping Citizens Understand the Environmental and Humanity Abuses That Support Clean Energy," which was nominated for the Pulitzer Prize in 2021, discusses the lack of transparency regarding the impact of the green movement on exploitations in developing countries. Additionally, a 2-minute clip from Michael Moore's documentary film "Planet of the Humans" highlights how so-called green electricity is produced.

As the future approaches, automobile manufacturers are mandated to reduce emissions in their vehicle fleets, leading to a shift towards manufacturing more EVs. This may result in fewer hybrid vehicles, as manufacturers need to eliminate gasoline engines to meet emission targets.

The problem arises when manufacturers have an abundance of EVs in their supply chain but lack sufficient demand from the public. The current profile of elite EV owners includes high education, high compensation, multi-car families, and low mileage requirements for their second car. However, the majority of potential car buyers are not as highly educated or compensated as these elite owners. Mandating a switch to EV ownership and imposing austerity measures may face resistance from those in need of affordable transportation.

In the United States, annual car sales historically include about 15 million new internal combustion engine (ICE) cars and 40 million used car sales. However, the EV industry currently has virtually no used car market. This, coupled with the challenges of EV charging and potential battery replacements, poses a major problem for the auto industry.

The distribution of EV ownership throughout the nation is also a concern, as most states do not have a year-round temperate climate like California. Currently, 40% of EVs in America are in California, while the remaining 60% are spread across the other 49 states, resulting in approximately 1% per state. California imports more electricity than any other state, receiving between one-fifth and one-third of its supply from outside the state. Other states have limited EV charging infrastructure and may even export electricity to California.

In the UK, the demand for electricity is outpacing supply, leading to the implementation of Smart Chargers and Separate Meters for EV charging users. New home and workplace chargers must now be "smart" chargers connected to the internet and subject to preset limitations on their functioning hours. Additionally, authorities can impose randomized delays to prevent grid spikes. Legislation requires all home-installed EV chargers to be separately metered and connected to the Smart meter data communications network. This allows for the potential charging and taxation of EV electricity at higher rates and enables electricity rationing for EV charging, as well as the ability to drain EV batteries into the grid if necessary.

As new EV inventories continue to rise, there are challenges ahead for widespread adoption among the general population.

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."

FutureCar Staff