Electric Cars and the Auto Industry's Uncertain Future

author: FutureCar Staff    

With the increase in new electric vehicle (EV) inventories on dealer lots, the auto industry is faced with numerous challenges. These challenges 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 EV owners' free ride on highways without 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 that it is ethical, moral, and socially responsible to purchase an EV. This is especially difficult since most of the exotic minerals and metals used in EV batteries are mined in developing countries with limited environmental and labor regulations. The lack of transparency in the green movement's impact on these countries is highlighted in the book "Clean Energy Exploitations" and the 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 strive to meet lower emission targets. However, despite the increase in EV supply, there is still a lack of demand from the public. The current profile of EV owners consists of highly educated, highly compensated, multi-car families with low mileage requirements for their second car. This profile differs greatly from the majority of potential car buyers who may not have the same education or income levels.

Historically, the majority of car sales in America are used combustion engine cars. However, the EV industry has yet to establish a significant used car market. This lack of a resale market, combined with the challenges of EV charging and potential battery replacements, poses a major problem for the auto industry.

Furthermore, the distribution of EV ownership throughout the nation is a concern. While California accounts for 40% of EVs in America, the other 49 states have a much lower percentage. Additionally, California imports more electricity than any other state, which raises questions about the ability of other states to support EV growth. The UK, for example, has implemented smart chargers and separate meters for EV charging to protect its grid.

With the bumpy roads ahead for EV penetration into the lifestyles of the common folks, the auto industry must address these challenges and concerns to ensure a successful transition to electric vehicles.

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

FutureCar Staff