Electric Cars and the Auto Industry's Uncertain Future

author: FutureCar Staff    

With the increasing inventories of electric vehicles (EVs) on dealer lots, the auto industry is facing several challenges. These challenges include addressing 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 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 that it is ethical, moral, and socially responsible to buy an EV. This is especially difficult since many of the exotic minerals and metals needed to build 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 discussed in the book "Clean Energy Exploitations" and illustrated in Michael Moore's documentary film "Planet of the Humans."

As government mandates push automobile manufacturers to reduce emissions, they are increasingly focusing on manufacturing EVs. This means we may see fewer hybrids in the future as manufacturers strive to meet emission targets. However, despite loading up dealer lots with EVs, there is not enough 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 is not representative of most potential car buyers who are not as highly educated or compensated. Mandating a switch to EV ownership and imposing austerity measures may face resistance from those who need affordable transportation.

The lack of a used car market for EVs is also a major problem for the auto industry. Currently, about 73% of all car sales in America are used combustion engine cars, and EVs have virtually no resale market. Additionally, the distribution of EV ownership throughout the country is uneven, with California accounting for 40% of all EVs in America. This raises concerns about the availability of EV charging infrastructure in other states.

In the UK, where EV adoption is more advanced, the grid is being protected with smart chargers and separate meters for EV charging users. These measures help manage the demand for electricity and prevent grid spikes. Home and workplace chargers in the UK must now be smart chargers connected to the internet and have pre-set limitations on their functioning hours. The UK Electric Vehicles (Smart Charge Points) Regulations 2021 also require separate metering for home-installed EV chargers, potentially allowing for higher taxation on EV charging. The technology implemented in the UK also enables the rationing of electricity for EV charging and the ability to drain EV batteries into the grid if needed.

As new EV inventories continue to rise, there are challenges ahead for the widespread adoption of EVs among the general population. Addressing concerns about EVs and ensuring the availability of charging infrastructure will be crucial for the auto industry to overcome these challenges.

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

FutureCar Staff