Electric vehicles don’t need gas, but the costs are racking up


Ashley Nunes is a Harvard Law School researcher and think tank director of competition policy at the R Street Institute. He previously led a research project sponsored by the US Department of Defense and the Department of Transport. In this post, he argues that electric cars save consumers from gas prices, while costs are rising elsewhere.

Americans who are worried about gasoline prices may soon feel at ease. Cartel of the country that manages about 80% of OPEC + — Proven Oil reserves — Last week, global production increased by 400,000 barrels per day. For over a year, it’s enough to fill a big soccer stadium 53 Many times. What is the result of the increased production? Crude oil prices have fallen. And when prices go down, if gas prices follow, consumers are happy.

Instead of relying on Saudi Arabia’s generosity, you can also use electricity. Compared to gas guzzlers, electric vehicles (EVs) require less energy to travel. In other words, you will spend more miles per dollar. Electricity is also cheaper than gas, so you can save even more. Therefore, the White House’s preference for everything in electricity.In a recent interview, Secretary of Transportation Pete Butigeg Emphasis Family members who buy EVs will say, “You never have to worry about gas prices again.”

Maybe. The decline and flow of global oil production, and the subsequent impact on gas prices, is certainly of little importance to EV users. Why do you need it? The previous petrol gives you the luxury of not being fooled by the petrol price. In this regard, it is no mistake that the Secretary advertises the benefits of EV savings. But his laser, which focuses on some type of savings, also needs to point out what it really is. It’s a financial shell game that conveniently accepts the truth of one set and downplays another.

Let’s start with the cost of EV. The initial cost of gasoline mentioned above is not cheap. The battery configuration used in EVs composed of cobalt, lithium, manganese, etc. mainly explains why. These raw materials are expensive and the processes involved in their manufacture are difficult. EV batteries also require advanced sensors and software to function. This is a layer of complexity that adds additional cost. result? A sticker price that is consistently higher than the gas guzzler.

The cost goes down.When it comes to making things, the saying “practice is perfect” Hold.. First-generation mobile phones released in 1983 cost $ 3,995, and inflation-adjusted prices are more than ten times the price consumers pay for today’s much more powerful devices. Why doesn’t the EV battery follow it?

The cost of the battery is going down.According to one estimate, they cost Today, it’s 89% less than it was 10 years ago. However, it still costs more than what it takes to rival a gas engine. One of the reasons is the cost of manufacturing the battery (or device for that). can not Less than that component. If so, the manufacturer will be in the red. Moreover, lower battery costs do not necessarily mean lower EVs.

Between 2012 and 2020 average The starting price of EV is same During the period, battery manufacturing costs were reduced by 80%. This may seem confusing, but it’s not surprising.Price increase Reflect —Roughly — Consumer demand for features that improve comfort, convenience, and safety. Heated seats, touch screen displays, rear cameras, etc. In such cases, the savings from reducing battery costs are offset by the costs associated with adding other features. This problem is not limited to electric vehicles, but threatens the idea that the price of electric vehicles naturally follows the cost curve of batteries and is adopted in large numbers.

And even if prices go down, the problem will continue.

Refilling tanks is easy no matter where you live in the United States. From the coast to the coast, there are about 150,000 gas stations spread over a wide area.charging station — EV needs to be replenished — not so many. In addition, existing charging stations are unevenly distributed. California The number of charging stations is about the same as in 39 states, with the lowest total number.

The alleged solution is a nationwide network of chargers. Biden’s infrastructure bill will provide $ 7.5 billion to make charging stations as ubiquitous as gas stations. However, none of these chargers can match the efficiency of refilling with a regular pump. The former can take hours and the latter just minutes. This means that most Americans need to do most of the EV charging at home. problem? Not all The car owner has a driveway (or garage) and Have got Have more cars than any other plan or space in that space. In other words, for most Americans, topping an EV while sitting on the couch would be unlikely at best.

Similarly, EV owners don’t have to worry about gas prices. This is because the cost is still significant, such as the charging station at home, the interest in expensive leasing, and the loss of time on the charger.

Electric vehicles don’t need gas, but the costs are racking up Source link Electric vehicles don’t need gas, but the costs are racking up

The post Electric vehicles don’t need gas, but the costs are racking up appeared first on California News Times.

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