The Future of the Electric Car
2022 had record sales for electric vehicles (EVs) and if the momentum continues at the same pace it’s held over the last decade, we are nowhere near the end of electric vehicles. Nearly everything in the EV market is growing and expanding, from the increased production and innovation among automakers to increased federal funding focused on incentivizing companies to make more EVs and customers to buy them. Like any growing market, there are two sides to the coin. Many benefits and exciting innovations exist in the EV market, but are they enough to offset the potential concerns?
A big focus of the growing demand and market for electric vehicles is around the environmental impact. The last few decades have shown growing awareness and concern for the environmental impact of our actions and vehicles are a main point in that discussion. In the United States and throughout the world, passenger vehicles have been the most significant contributors of greenhouse gas emissions into the atmosphere. Although they possess their own concerns around the demand, mining, and future supply of lithium, the switch to lithium-ion batteries offers a positive outlook on the environmental impact compared to its internal combustion engine vehicle counterparts. Manufacturers are continuing to grow and build their strategies for an all-electric future and governments continue to encourage and subsidize that shift, setting up the next couple decades as being extremely pivotal and impactful for the future of EVs. Manufacturers are also continuing to expand their production lines for the types of vehicles that are electric. No longer is the EV market limited to smaller coupes and hatchbacks as automakers are continuing to shift their focus into electrifying both pickup and semi trucks, vans, and buses, all aiding to cut down emissions from our fleets and passenger car travel.
While the production of the vehicles continues to expand to meet demand, the power infrastructure is working hard to do the same. The need to create and build out the network of charging stations will cost tens of billions of dollars as both the public and private sector brainstorm the most effective way to do this. Currently the market sits in the midst of consumer hesitancy to buy EVs without a strong and widely-available charging infrastructure while the stakeholders tasked with building out the infrastructure navigate the many potential hurdles involved in the process, such as seeking approvals from local officials and municipalities in addition to the logistical and engineering difficulties of connecting a charging station to the grid.
Although there are far more considerations and opportunities in the EV market, the funding already taking place paired with the continuing social pressure and demand has the future of the electric car looking very bright. Keep an eye on the next two decades, as we expect to see major shifts by 2040 that will set up the rest of the century for drastic shifts in energy and travel.
