By Elric Langton | 20 January 2024
As we delve into the labyrinthine world of the electric vehicle (EV) market, let’s hold our horsepower and consider the other side of the lane. Our previous discussions have often painted a less-than-rosy picture of the EV as the knight in shining armour against climate change. However, in today’s feature, we look at issues from the manufacturing side of the production line and the consumer pothole-ridden route and examine the thorns of this burgeoning industry. Below are the top ten issues - we cover most of them, but there are many more problems with the adoption of EVs that we do not focus on here.
Once considered the sustainable replacement for traditional petrol-fueled vehicles, the EV market now shows signs of trouble. Consumers have been inundated with flashy advertising campaigns, and mainstream media outlets have contributed to misrepresentation. Meanwhile, investors in rare earth mining, particularly lithium mining, are bombarded with social media hype, IPOs, and potential investors. Our publication has played a role in this sector and subsectors, but we have always provided caveats that some investors may overlook.
Hype can be expensive
Picture this: a new EV, gleaming with gadgets and promises of cheaper running costs, more reliability, and a greener footprint. Yet, this utopian dream is starting to resemble a mirage in the harsh light of reality. The landscape is littered with challenges - from inadequate infrastructure and charging nightmares to skyrocketing insurance costs and plummeting resale values. The once-celebrated EV faces a cold shoulder from consumers, who are increasingly wary of its purported benefits.
Consider the refuelling - or, instead, recharging - costs. A rapid 30-minute charge at a public station can set you back around £6, roughly on par with a gallon of petrol or diesel. Sometimes, you might even stumble upon a free charging oasis. And for those who've invested in a home charging point, the deal gets sweeter: about £2 for 100 miles of motoring.
Of course, most people will compare petrol/diesel refuelling costs per/kWh, of electricity, which is typically cheaper, especially if you have a home off-peak tariff.
Zapmap's data reveals a significant leap in the UK's electric vehicle charging infrastructure. As of July 2023, the country was home to 45,737 charging points for electric vehicles, marking a robust 40% increase from the previous year; even so, much more is needed to curb range anxiety.
Among these, just 8,772 are categorised as rapid and ultra-rapid chargers. However, it's not all an equal spread. The distribution of these charging points is somewhat skewed geographically. For instance, London is a veritable hub for EV chargers, while areas like the Midlands are somewhat lagging in comparison.
But there's a silver lining. The government is stepping up its game, injecting more funds to ensure a more uniform spread of charging facilities across the UK. This investment is a nod towards a future where the convenience of charging an EV is not just a luxury afforded to those in the capital or major cities but a commonplace feature across the country.
Useful data from Moneysupermarket
I am not certain about the accuracy or currency of the aforementioned data. I have encountered some public charge points that charge 85p per/kWh, whereas my home quote was only 7p per/kWh off-peak within a 6-hour window. Certain risks and extra expenses are involved in home charging, which deserve a separate section. For now, I would avoid charging in a garage port next to my home; There is a fire risk.
Insurance Hike
The motoring public is becoming increasingly aware of significant surges in their insurance premiums despite many not having made a claim for years or at all. This rise in premiums is causing a stir, especially among drivers of traditional ICE vehicles, who suspect their costs are being inflated to offset the insurance prices for EV drivers. This suspicion is fuelled by the escalating expenses in repair, materials, labour, and the value of second-hand cars, and seemingly minor prangs become severe incidents resulting in an EV being totalled due to the expense related to the battery. According to the Association of British Insurers (ABI), insurers doled out a whopping £2.5 billion to claimants in the past year.
The ABI's figures reveal a rather concerning trend: for every pound insurers receive in premiums, they're shelling out £1.10.
Even worse, some insurers have begun pulling the plug by refusing to insure EVs. In the most well-publicised example to date, John Lewis’ underwriting partner Covea paused customers from renewing or taking out new policies for battery-powered vehicles in October amid a review into costs.
The giants of the automotive industry – Ford, GM, and Tesla – are feeling the pinch
GM’s ambitious Ultium battery venture is facing scaling issues, and its Orion plant conversion is delayed by a year. Ford, meanwhile, has halved its production plans for the electric F-150 Lightning amid rising labour costs and disappointing demand. The company is battling political backlash over its licensing deal with Chinese battery manufacturer CATL.
But it’s not just the big names that are in troubled waters. Across the board, EV manufacturers are wrestling with supply chain woes and technology challenges. Consumer Reports has highlighted the reliability issues plaguing EVs, with battery and charging system troubles leading the charge. The industry, still in its infancy, is on a steep learning curve.
Much of the woes the industry is facing are related to the arbitrary goals set pushed by unelected hypocrites at the World Economic Forum (WEF) who boast they have supplanted weak, non-critical-thinking politicians in several countries’ parliaments that aid goals set at Davos. Rather than allow the tried and tested capitalists market service and dictate demand, WEF, in particular, has used fact data, misinformation, and dam right lies to force their agenda, playing God drunk on power, rushing through legislation far too quickly, which as we are now witnessing, is proving far more expensive and more problematic on the technical and reliable front than envisaged.
The Green-Lie
The environmental credentials of EVs are also under scrutiny. The production of EVs, particularly the batteries, is a carbon-intensive process. When we factor in the emissions from mining, refining, and manufacturing, the green halo of EVs starts to tarnish. Moreover, the sustainability of EVs is closely tied to the source of their electricity, usually coal, not wind or solar (don’t get me started on this fiasco and misinformation). If the power comes from coal-fired plants, the environmental benefits diminish significantly.
And let’s not forget the elephant in the room – the price tag. Despite long-term savings on fuel and maintenance (another misselling point), the upfront cost of EVs remains a significant barrier for many consumers. Moreover, the limited range and sparse charging infrastructure are substantial roadblocks, especially for those living in urban areas with limited access to personal charging options.
The path to EV domination is fraught with pitfalls and potholes. The industry, once the darling of the green revolution, must navigate these challenges if it hopes to drive into a sustainable future. As we continue our journey from ICE to EV, it’s crucial to keep our eyes open to the bumps along the way.
You may not like the following article if you are invested in a basket of lithium miners like me. The whole lithium market and subsector have significant issues. Some of these will be tackled in the following article.
Trip or Marshmellow?
Turning our focus to the UK, the issue of charging points for EVs is a bit like a classic British queue – there’s a polite order but not enough service windows. As of the end of 2023, the UK boasted approximately 50,000 EV charging stations sprawled across 20,534 locations. Impressive? Perhaps, until you consider that by 2025, this number is expected to swell to 80,000 sockets. This seems a fair match for the 8,378 petrol stations dotting the UK landscape, but the devil is always in the details.
Refuelling a traditional vehicle is typically a matter of minutes. In contrast, charging an EV is more akin to a leisurely tea break – think, 30 minutes or more, you can get a charge point. And while many petrol stations offer a bevvy of pumps, EV charging stations are more sparse.
The solution for many has been to install personal charging points at home. However, this isn’t a viable option for city dwellers nestled in terraced housing with cars parked at a respectful distance from their front doors. And for those with the luxury of a driveway or garage, there’s a new plot twist: a growing unease over safety, with reports of EVs turning into impromptu bonfires during charging. It’s enough to make one’s hair stand on end! And if you’re thinking of toasting a few marshmallows, think about the highly toxic thermal runaway. In fact, you better be running away!
As we steadily embrace EVs (cough), the challenge of keeping them juiced up looms large. The EV, it seems, is poised to become the next indispensable gadget if left to WEF and its puppet elite class, much like our smartphones, constantly needing a power top-up. But as we navigate this transition, the question remains: how do we ensure this doesn’t turn into a case of ‘all gear and no idea’?
Cheap as Chips
When it comes to the daily running costs of EVs, it's a bit of a curate's egg – good in parts. The elephant in the room: the upfront cost. Yes, electric cars tend to demand a heftier initial outlay than their fossil-fuelled brethren, c£10,000 at the lower end of the range. However, it's not all doom and gloom once you've handed over your hard-earned cash.
Now, let's talk about maintenance. Electric cars are like the streamlined swans of the automotive world – fewer moving parts, no need for oil changes, and goodbye to those pesky filters. This simplicity translates to lower servicing costs. And the pièce de résistance? The battery – the heart of an electric car. These power packs have come a long way in terms of reliability and are often accompanied by lengthy warranties or lease options.
So, if you're playing the long game, the total cost of ownership for an electric car can be more wallet-friendly than a traditional petrol or diesel vehicle. It's a classic case of spending a bit more upfront to save down the line – a bit like buying a good quality raincoat in Britain; pricey, but it'll keep you dry for years. Oh, wait, I almost gave you the BBC or The Guardian spin.
EV owners face repair bills thousands of pounds higher than fossil vehicles. A lack of specially trained mechanics, extra safety measures for potentially explosive batteries and a greater need for replacement parts are to blame. Moreover, if an EV has been involved in a side impact or heavy shutdown, the battery pack needs to be checked for safety, and you better hope it does not need to be replaced.
A recent report from Thatcham Research, backed by Innovate UK, the Government's innovation agency, has spotlighted the cost disparities in repairing EVs compared to ICE counterparts. This study intriguingly dissects the technical and procedural contrasts in insurance claims between battery electric vehicles (BEVs) and traditional ICE vehicles.
For those of you who do not know, Thatchams is critical to the crash repair industry because insurance Companies use their repair time data for billable hours.
Despite BEVs being kitted out with a high level of Advanced Driver Assistance Systems (ADAS) and passive safety features, they're not immune to mishaps. In the burgeoning world of EVs, the industry is still finding its feet, leading to BEV incident claims to be notably more expensive – by a margin of 25.5% – than those for ICE vehicles. Moreover, these claims tend to take 14% longer to process. This situation paints a picture of a sector still in its adolescence, grappling with the growing pains of integrating cutting-edge technology with real-world practicality. Who would have guessed?
Plan to Drive
Lithium-ion batteries power most electric vehicles. These batteries are highly sensitive to temperature. The colder, more extreme temperatures can reduce the efficiency of lithium-ion batteries, which typically affects battery performance by 15-20% fewer miles from an EV in the winter than in the summer, which would reduce battery performance even further in icy conditions.
If you missed Part One, you can read it here.
Riding the Lithium Rollercoaster.
Opinions
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