California has managed to cultivate the largest electric vehicle market in America in a few short years, hosting major EV makers such as Tesla, Rivian and Lordstown Motors while accounting for a significant percentage of EVs sold in America. As of the end of 2021, there were slightly more than one million electric vehicle units registered in California, more than any other state in the country.
The Golden State is now planning on banning the sale of new internal combustion engine cars (ICE) by 2035 as part of its efforts to curb carbon emissions. A policy that will outlaw the sale of new gasoline-powered cars has received approval from state regulators. However, despite the progress California has made over the past decade, there are still a few significant challenges standing in the way of this ambitious goal.
Electric cars are still expensive. Ever since they first hit the roads, electric vehicles have been significantly more expensive compared to similar gas-powered vehicles. Even with state and federal subsidies, buyers often have to dig deeper into their pockets to purchase EVs. And thanks to factors such as supply chain constraints and shortages, the average price of a new EV has gone up to a whopping $66,000. This locks out a large chunk of the market from purchasing EVs.
EV infrastructure is still woefully insufficient. America’s charging infrastructure is simply too limited to comfortably support the current number of EVs on the road, let alone a massive transition to electric cars. Furthermore, plenty of public chargers are faulty or don’t even work. The country’s electric grid also isn’t designed to support multitudes of power-hungry electric vehicles, culminating in range anxiety that has prevented many drivers from switching to EVs.
Electric vehicle adoption could have major labor consequences. A recent report by Ernst and Young estimated that of the 590,000 employees who are involved in automotive parts manufacturing, 150,000 build parts for internal combustion engine powertrains. Automakers will have to either train their employees on designing electric motors and EVs in general or lay off some of their workers as they electrify. Ford recently fired 3,000 employees as part of its efforts to restructure its human resources in readiness for electrification.
China maintains a monopoly on the EV battery mineral market. Electric vehicle batteries are built using scarce minerals such as cobalt, nickel and manganese. On top of being the largest EV market on the globe, China is also the largest supplier of critical EV battery metals in the world. Guidehouse Insight analyst Sam Abuelsamid estimates that an estimated 90% of the lithium used in EV batteries comes from the country.
Although the Biden administration has been urging automakers to source these metals locally, breaking China’s dominance won’t be easy even though U.S.-based energy storage companies such as QuantumScape Corp. are doing what they can to improve the EV battery technology upon which electric vehicles depend.
About Green Car Stocks
Green Car Stocks (GCS) is a specialized communications platform with a focus on electric vehicles (EV), as well as other emerging market opportunities in the green sector. The company provides (1) access to a network of wire services via NetworkWire to reach all target markets, industries and demographics in the most effective manner possible, (2) article and editorial syndication to 5,000+ news outlets (3), enhanced press release services to ensure maximum impact, (4) social media distribution via the Investor Brand Network (IBN) to millions of social media followers, and (5) a full array of corporate communications solutions. As a multifaceted organization with an extensive team of contributing journalists and writers, GCS is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. By cutting through the overload of information in today’s market, GCS brings its clients unparalleled visibility, recognition and brand awareness. GCS is where news, content and information converge.
To receive SMS text alerts from Green Car Stocks, text “Green” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.greencarstocks.com
Please see full terms of use and disclaimers on the Green Car Stocks website applicable to all content provided by GCS, wherever published or re-published: https://www.greencarstocks.com/Disclaimer
Green Car Stocks
Los Angeles, CA
www.greencarstocks.com
415.949.5050 Office
[email protected]
Green Car Stocks is part of the InvestorBrandNetwork.
