The War Within Electric Vehicles
- Theo DiBiasi
- Nov 28, 2022
- 4 min read
Updated: May 17, 2024
Theo DiBiasi
History of the Electric Vehicle:
Volvo, Nissan, NIO, Rivian, and of course, Tesla, have slowly taken over the roads and motor vehicle industry. From Tesla's charging at the nearby Sheetz here in Pennsylvania, to the celebrities cruising around LA in their charging cars, to the citizens of China driving BYD’s electric vehicles, these automobiles are seen everywhere. Businesses producing such vehicles continue to innovate, impress, and manufacture new possibilities for the future of the electric car. Although the invention of these electric vehicles seem more modern, they have been around for ages.
Electric vehicles have been around as early as 1889, when William Morrison successfully created the first electric vehicle in the United States. In the late 1800s and early 1900s, these vehicles gained popularity; furthermore, Thomas Edison worked to build better batteries for these vehicles and believed they were the best mode of transportation. Although they started to gain a following, with the Model T gas-powered car hitting the market and becoming widely available, the electric vehicle fanfare dispersed.
Around 1935, practically all electric vehicles disappeared up until recent times. In 1990, new regulations on both the federal and state level renewed electric car interest. Companies began producing electric vehicles out of popular car models. As a result the electric vehicle cult slowly returned. From 2009-2013, the Energy Department invested in installing 18,000 chargers nation-wide. To add to the investment in chargers, their investments in car batteries made the cost of batteries drop by 50% in four years; in return, electric vehicles became more affordable for the public.
With electric vehicle demand and amounts currently increasing, electric vehicles are projected to be seen more and more every year. Some say by 2050, more than half the cars on the road could be electric vehicles; however, this could happen sooner or even later than expected. I think that we will see a massive influx of electric automobiles within the next 30 years. That being said, I believe the influx will be slow and grow over time, gradually increasing until all cars become electric and every gas station has charging stations.
The Current Electric Vehicle Economy:
Despite the electric vehicles’ prices dropping and becoming more affordable, consumers that have invested in one, or are attempting to, face a difficult market to participate in. For instance, demand completely outweighs supply currently, and might continue to for years to come. Companies have generated long wait lists – some say up to over a year – and are working hard not to disappoint customers. Around the time of the pandemic, the increase in electric vehicle demand surprised many auto executives. With a high volume of lowballed electric vehicles, the supply-demand ratios have put companies behind, hence the one year plus wait lists to drive your own.
Furthermore, supply shortages affecting electric vehicle production hinders companies by creating more delay in the production process. Contracts for the vehicles’ batteries have become a struggle for companies to lock in. Companies search worldwide for supplies they can get ahold of in the hopes that they can obtain battery cells. As of recently, a chip shortage has negatively affected the production of electric vehicles. Without these chips, each company’s vehicle production will fight an onerous battle to keep up with the waitlist for each electric vehicle. Luckily, President Biden has recently released a plan to invest $50 billion in chips, with hopes of helping not only the electric vehicle industry, but other industries struggling to produce products with a lack of chips. I do not anticipate these supply issues will continue to hinder the industry for years in the future. Although there are great affects currently on the economy, I surmise a cheaper, and smoother future for the supply of EV’s.
To add on to the chip shortage, China – the country with the largest electric vehicle market – has had increased electric vehicle sales that have recently affected lithium costs. With lithium prices growing, supply for electric vehicles becomes threatened, specifically with lithium being key for batteries. Edward Meir, a consultant at ED&F Capital Markets, said this lithium price surge could show us a “preview” of what might come to the United State’s EV market. Sure enough, lithium prices rising has caused more issues in supply. Furthermore, nickel prices rising has caused battery prices to increase, which could produce trouble for the EV industry.
With the cost of production rising from metal prices, battery supply, the chip shortage, and supply continuously growing every day, electric vehicle producers have their hands full. Regardless, I believe electric vehicles will continue to take over the roads, and possibly fully take over the motor vehicle someday: whether it be in our lifetime or not. With current shortages in supply, the market does not look promising; however, I believe the market will even out and continue to improve over the next few years.
Sources:
Cover photo: https://unsplash.com/photos/O63S96_qn8c
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