Electric vehicles (EVs), which are marketed as a viable alternative to traditional cars, are revolutionising the automotive industry. With transportation emissions constantly rising, EVs are paving the way for a cleaner, greener future. However, there is a barrier that must be overcome, and that is the cost. Electric vehicles are expensive, which presents a significant barrier for EV makers, particularly in a region where value is prioritised, like Australia. Why are electric vehicles so pricey?
The main problem to take into account is that there are only a few companies producing batteries for EVs, and they have very limited production output and price control. This will change over the next ten years, and electric vehicle costs may later decline as the fundamentals of development costs stabilise and manufacturers increase the variety of EVs in their lineups. This will spread the “prices” across a wider base with greater volumes and lower the unit cost of individual components.
As of now, if you want to buy any EV charging cable Australia at a reasonable price, you can get it from Jucer Charge On. They deliver anywhere in Australia. Being passionate about EV technology, the business owner tries their best to deliver the best charging technology to their customers. They aim to contribute toward a greener society.
For EVs to become a possibility, auto companies have had to invest billions of dollars in research and development over a relatively short period. Despite being inherently less complicated when compared to electrical motors, combustion engine powertrain, and battery packs work in a very different way, necessitating a unique testing method that requires large engineering teams to be familiar with their distinctions and tune them correctly while also ensuring that these are safe to operate and provide semipermanent reliability. Previously, the engineers had to create a new model or update features from the existing car. However, with electric automobiles, they need to start over from scratch and that is expensive.
The lack of consumer demand for EVs at the moment suggests that they are being built in smaller numbers when they have been approved and are already moving down the assembly line. Additionally, because of the smaller volumes, every motor, battery pack, and each component in an EV cost more, which is why the automakers are working so hard to recoup some of the billions they invested in R&D.
Use of Expensive Metal and Raw Material in Batteries
The battery pack in a typical EV will be up to a few meters long, around a meter wide, between 10 and 20 cm thick, and weigh several kgs. While the electric motors and transmissions in EVs are relatively simple and affordable, lithium-ion battery cells are expensive. High-priced yet necessary metals, like cobalt, are one of the reasons batteries are so expensive to produce. Most lithium-ion batteries are used in EVs, and hybrids nowadays use cobalt. To control cell voltage, charge and discharge rates, and temperature, batteries also require sophisticated sensors and software. This complexity adds more cost.
Though Tesla and General Motors are working on finding ways to reduce the price of EVs by using cheaper raw materials, this will take another 5 years to come into action. Till then, we can wait for start-ups and other manufacturers to come up with some great innovative ideas that may help us in cutting costs.