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menu-item-15"><div class="ancestor-wrapper"><a href="http://evchargingsummit.com/">Summit & Expo</a></div></li> <li class="menu-item menu-item-type-post_type menu-item-object-page menu-item-18"><div class="ancestor-wrapper"><a href="https://evchargingsummit.com/blog/contact/">Contact</a></div></li> </ul> </nav> </div> <div class="menu-bottom"> </div> </div> </div> </div> <div id="site-page-grid"> <main id="site-content" class="flex-container"> <article class="post-470 post type-post status-publish format-standard has-post-thumbnail hentry category-ev-trends" id="post-470"> <header class="entry-header has-text-align-center header-footer-group"> <div class="entry-header-inner section-inner medium"> <div class="entry-categories"> <span class="screen-reader-text">Categories</span> <div class="entry-categories-inner"> <a href="https://evchargingsummit.com/blog/category/ev-trends/" rel="category tag">EV Trends</a> </div> </div> <h1 class="entry-title">10 Biggest Challenges Facing the EV Industry Today</h1><p style="text-transform: uppercase; margin: 6px 0 0 0; font-size: 90%; font-weight: 600;" class="entry-title-date">January 26, 2023</p> </div> </header> <div class="post-inner thin "> <div class="entry-content"> <div class="wpsso-pinterest-image" id="pin-it-post-470_type-post" style="width:0;height:0;display:none !important;"></div><p><span style="font-weight: 400;">Transportation can play a significant role in a person’s day-to-day life, and it’s human nature to feel comfortable making a big change only when the behavior becomes a social norm. Although awareness of EVs is high, </span><a href="https://energycentral.com/o/EPRI/understanding-barriers-and-challenges-greater-ev-adoption"><span style="font-weight: 400;">nearly two-thirds (65 percent)</span></a><span style="font-weight: 400;"> of Americans have never driven an EV or known anyone who owns one. </span> <p><span style="font-weight: 400;">Despite that, EV adoption is accelerating rapidly, driven by the rising cost of gasoline, longer ranges due to improved battery performance, reduced battery cost, and federal and state incentives. Younger Americans are particularly aware of related environmental issues, with </span><a href="https://www.pewresearch.org/fact-tank/2021/06/03/electric-vehicles-get-mixed-reception-from-american-consumers/"><span style="font-weight: 400;">42% of Gen Z</span></a><span style="font-weight: 400;"> saying they are at least somewhat likely to consider an EV purchase, compared to 32% of Baby Boomers.</span> <p><span style="font-weight: 400;">These are positive trends, but the EV industry faces many pressing challenges. Here are ten issues we must address as the industry progresses.</span> <h3><strong>1. Purchase Cost</strong></h3> <p><span style="font-weight: 400;">The EV industry’s biggest challenge is vehicle purchase cost. Electric vehicles are more expensive to build than gasoline-powered ones, primarily because of battery technology. EV batteries must hold a massive charge to provide the minimum range for most owners, requiring </span><a href="https://www.erneuerbar-mobil.de/en/node/985"><span style="font-weight: 400;">expensive raw materials</span></a><span style="font-weight: 400;"> to manufacture.</span> <p><span style="font-weight: 400;">Even when discounting battery costs, there is such a massive supply of gas-powered vehicles in the U.S. that they are comparatively cheap. Although EVs may be less expensive to operate than their gasoline counterparts, first, they have to be bought – and currently, there are few models on the market with a sticker price of </span><a href="https://insideevs.com/reviews/344001/compare-evs/"><span style="font-weight: 400;">less than $30,000</span></a><span style="font-weight: 400;"> (not including </span><a href="https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after"><span style="font-weight: 400;">government tax credits</span></a><span style="font-weight: 400;">). Used models that go for half or less of the new-car MSRP tend to be older models with much less battery range. </span> <p><span style="font-weight: 400;">This situation will improve as EV sales climb overall and EV owners reach the trade-in stage. </span><div class="g g-1"><div class="g-single a-3"><a href="https://evchargingsummit.com/blog/ebook-innovations-in-ev-charging/" target="_blank"><img alt="" src="http://evchargingsummit.com/blog/wp-content/uploads/2024/11/ebook-ad-for-AdRotate-on-WP-728x90-1.jpg" style="padding-bottom: 40px;"/></a></div></div> <p><i><span style="font-weight: 400;">A note about operating cost: </span></i><span style="font-weight: 400;">According to the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) and the Idaho National Laboratory, EVs save their owners </span><a href="https://www.nrdc.org/stories/electric-vs-gas-it-cheaper-drive-ev"><span style="font-weight: 400;">between $4,500 and $12,000</span></a><span style="font-weight: 400;"> on operating costs. The amount depends on where the driver lives, with Hawaii providing the lowest savings and California the highest. </span> <h3><strong>2. Range Anxiety</strong></h3> <p><span style="font-weight: 400;">Range anxiety is real. Americans are used to jumping in their cars and going wherever they want (and however far) without worrying about finding a gas station for a quick fill-up when needed.</span> <p><span style="font-weight: 400;">But people are worried about how far they can travel in an EV before finding a charging station and then having to wait through a long charging session. This challenge is particularly a concern during the winter when there can be a significant reduction in an EV’s regular battery range due to below-freezing temperatures.</span> <p><span style="font-weight: 400;">Most EVs sold can go between </span><a href="https://www.howtogeek.com/807750/how-far-can-an-electric-car-go/#:~:text=How%20Many%20Miles%20Can%20an%20EV%20Drive%20on,and%20some%20can%20get%20350%20miles%20or%20more."><span style="font-weight: 400;">200-300 miles</span></a><span style="font-weight: 400;"> on a single charge in temperate weather conditions. That is plenty when you consider that Americans drive an average of </span><a href="https://www.fhwa.dot.gov/ohim/onh00/bar8.htm"><span style="font-weight: 400;">36 miles per day</span></a><span style="font-weight: 400;"> (about 13,500 miles per year). But for those long days on the road, weekend getaways, driving vacations, or just freezing weather, an EV owner may need a charge every 3-4 hours. </span> <p><span style="font-weight: 400;">And with </span><a href="https://usafacts.org/articles/how-many-electric-vehicle-charging-stations-are-there-in-the-us/"><span style="font-weight: 400;">just under 80%</span></a><span style="font-weight: 400;"> of public charging stations being Level 2, the amount of time to charge up their EV for the next 3-4 hours of driving can take 4-6 hours or longer.</span> <p><img decoding="async" class="aligncenter size-full wp-image-471" src="http://evchargingsummit.com/blog/wp-content/uploads/2023/01/Blinkcharging-dot-com.jpg" alt="" width="1000" height="563" data-wp-pid="471" srcset="https://evchargingsummit.com/blog/wp-content/uploads/2023/01/Blinkcharging-dot-com.jpg 1000w, https://evchargingsummit.com/blog/wp-content/uploads/2023/01/Blinkcharging-dot-com-300x169.jpg 300w, https://evchargingsummit.com/blog/wp-content/uploads/2023/01/Blinkcharging-dot-com-768x432.jpg 768w" sizes="(max-width: 1000px) 100vw, 1000px" /> <p><em><span style="font-weight: 400;">(Image Source: <a href="http://BlinkCharging.com">BlinkCharging.com</a>)</span></em> <h3><strong>3. Limited Selection</strong></h3> <p><span style="font-weight: 400;">Ten years ago, EV models in the U.S. were limited to the Nissan Leaf 24kWh, Tesla Roadster 1.0, and the Mitsubishi iMIEV. Selection is rapidly increasing now as manufacturers ramp up. As of 2022, there were </span><a href="https://thenextweb.com/news/massive-infographic-catalogues-every-ev-model-available-us#:~:text=There%20are%2028%20electric%20vehicle%20models%20available%2C%20produced,produce%20electric%20vehicles%3A%20Tesla%2C%20Rivian%2C%20and%20Lucid%20Motors."><span style="font-weight: 400;">28 EV models available</span></a><span style="font-weight: 400;"> in America from 18 manufacturers.</span> <p><span style="font-weight: 400;">There is still a limited selection of EVs compared to gasoline-powered cars, and most auto manufacturers offer only a few models. Sedans, hatchbacks, and SUVs are becoming more available. However, people looking for a truck or minivan still need more choices.</span> <p><span style="font-weight: 400;">Ford introduced the F-150 Lightning in 2022, their EV version of America’s best-selling passenger truck. It has proven so popular that scheduled production is already pre-sold for an </span><a href="https://avtowow.com/best-electric-pickup-trucks"><span style="font-weight: 400;">entire year in advance</span></a><span style="font-weight: 400;">.</span> <h3><strong>4. Difficulty Finding a Technician</strong></h3> <p><span style="font-weight: 400;">Most car owners find that having their vehicle serviced by a dealer can be significantly more expensive than using a qualified independent maintenance and repair shop. </span> <p><span style="font-weight: 400;">With the EV industry still comparatively small, there are relatively few trained EV repair technicians and even fewer qualified independent shops. Working on an EV beyond tires, brakes, light bulbs, and audio components can be dangerous for an untrained technician, which means most EV owners rely on their EV dealer for service.</span> <p><span style="font-weight: 400;">Fortunately, EVs need less maintenance than gasoline-powered cars. But if an expensive component needs replacing (such as the battery pack, which typically runs $5,000 and up depending on the EV model), there is currently little competition to help keep costs down. </span> <p><img decoding="async" class="aligncenter size-full wp-image-472" src="http://evchargingsummit.com/blog/wp-content/uploads/2023/01/Green-Car-Reports-dot-com.jpg" alt="" width="1000" height="667" data-wp-pid="472" srcset="https://evchargingsummit.com/blog/wp-content/uploads/2023/01/Green-Car-Reports-dot-com.jpg 1000w, https://evchargingsummit.com/blog/wp-content/uploads/2023/01/Green-Car-Reports-dot-com-300x200.jpg 300w, https://evchargingsummit.com/blog/wp-content/uploads/2023/01/Green-Car-Reports-dot-com-768x512.jpg 768w" sizes="(max-width: 1000px) 100vw, 1000px" /> <p><em><span style="font-weight: 400;">(Image Source: </span><a href="https://www.greencarreports.com/"><span style="font-weight: 400;">GreenCarReports.com</span></a><span style="font-weight: 400;">)</span></em> <h3><strong>5. Charging Infrastructure</strong></h3> <p><span style="font-weight: 400;">The scarcity of charging stations in many areas of the country is increasing the incidence of range anxiety. The federal government is working to help improve the situation through the passage of the </span><a href="https://www.congress.gov/bill/117th-congress/house-bill/3684/text"><span style="font-weight: 400;">Infrastructure Investment and Jobs Act</span></a><span style="font-weight: 400;"> in 2021, which provides $7.5 billion in new funding for EV charging stations and related infrastructure. </span> <p><span style="font-weight: 400;">The Act will fund an equitable network of 500,000 EV chargers across 75,000 miles of designated corridors across the U.S., benefiting </span><a href="https://evchargingsummit.com/blog/the-state-of-ev-charging-infrastructure-in-rural-areas/"><span style="font-weight: 400;">rural communities</span></a><span style="font-weight: 400;"> as much as more highly populated areas. The plan dictates a charging station every 50 miles along the interstate and no more than a mile off the highway. Projects relying at least partly on this funding have already been approved in all 50 states.</span> <p><span style="font-weight: 400;">There are about </span><a href="https://afdc.energy.gov/stations/#/find/nearest"><span style="font-weight: 400;">56,000 EV charging stations</span></a><span style="font-weight: 400;"> in the U.S., 52,000 of those available to the public. (Finding them is getting easier, thanks to </span><a href="https://avtowow.com/top-electric-car-apps"><span style="font-weight: 400;">EV charging location apps</span></a><span style="font-weight: 400;"> like PlugShare.) These stations support about </span><a href="https://usafacts.org/articles/how-many-electric-vehicle-charging-stations-are-there-in-the-us/"><span style="font-weight: 400;">148,000 EVSEs</span></a><span style="font-weight: 400;"> (individual charging ports), of which about 80% are Level 2, 8% are fast-charging DC units, and the remaining 2% are Level 1 ports.</span> <p><span style="font-weight: 400;">Despite all the public charging resources, most EV charging still happens at home, presenting a challenge to those who live in shared housing (multi-unit dwellings, or MUDs) and those who have to park on the street.</span> <p><span style="font-weight: 400;">Studies show that accessible, onsite charging can make a difference in an EV driver’s decision to move into or remain in a particular residential property. The state with the highest EV penetration, </span><a href="https://www.remmgroup.com/wordpress/add-ev-charging-stations-to-multifamily-community/"><span style="font-weight: 400;">California</span></a><span style="font-weight: 400;">, already mandates that 3% of new MUD parking spaces be “make-ready” for EV charging. </span> <h3><strong>6. Charging Speeds</strong></h3> <p><span style="font-weight: 400;">Charging electric cars can be a problem for drivers who have trouble adjusting to the EV lifestyle, which can dictate a slower pace of life. </span> <p><span style="font-weight: 400;">There are </span><a href="https://evchargingsummit.com/blog/three-types-of-electric-vehicle-chargers/"><span style="font-weight: 400;">three primary levels of EV chargers</span></a><span style="font-weight: 400;">:</span> <ul> <li style="font-weight: 400;" aria-level="1"><b>Level 1: </b><span style="font-weight: 400;"> Uses a standard 120V plug and can charge most vehicles overnight. Extra-large batteries can take 20 hours or more to charge fully. Most residential chargers are Level 1.</span></li> <li style="font-weight: 400;" aria-level="1"><b>Level 2: </b><span style="font-weight: 400;">Uses 240V plugs and SAEJ1772 connectors. Most public charging stations are Level 2 or a combination of Level 2 and Level 3.</span></li> <li style="font-weight: 400;" aria-level="1"><b>Level 3: </b><span style="font-weight: 400;"> Uses 480V direct current (DC) fast chargers to provide the quickest possible charge.</span></li> </ul> <p><span style="font-weight: 400;">Level 2 chargers provide a full charge in as few as 3-4 hours (or as much as 10-12 hours, depending on battery size). A DC fast-charging station can take 30-60 minutes to charge an EV battery to 80 percent, which sounds fast until you consider how much time that can add to longer journeys. </span> <p><span style="font-weight: 400;">As battery technology improves, these times are expected to reduce substantially. For example, Porsche has already achieved DC charging speeds of </span><a href="https://www.porsche.com/usa/aboutporsche/e-performance/charging-bev/"><span style="font-weight: 400;">23 minutes for 88%</span></a><span style="font-weight: 400;"> for its Taycan model and claims that a mere 5 minutes can provide up to 62 miles of range. Tesla says that its Model S can achieve </span><a href="https://www.electronicdesign.com/markets/automotive/article/21808702/porsche-taycan-goes-from-5-to-88-battery-chargeat-270-kwin-22-minutes"><span style="font-weight: 400;">130 miles of range</span></a><span style="font-weight: 400;"> (about 35% of its total) with just 15 minutes of DC charging.</span> <h3><strong>7. Charger Compatibility</strong></h3> <p><span style="font-weight: 400;">Level 2 chargers are mostly coordinated, with all automakers except Tesla using the same type of charging port (Tesla drivers need an adapter). However, there are three different types of DC fast chargers:</span><span style="font-weight: 400;"><br /> </span> <ul> <li style="font-weight: 400;" aria-level="1"><b>SAE Combined Charging System (CCS):</b><span style="font-weight: 400;"> used by most manufacturers</span></li> <li style="font-weight: 400;" aria-level="1"><b>CHAdeMO:</b><span style="font-weight: 400;"> used by Nissan and Mitsubishi</span></li> <li style="font-weight: 400;" aria-level="1"><b>Tesla Supercharger: </b><span style="font-weight: 400;">used solely by Tesla vehicles</span></li> </ul> <p><span style="font-weight: 400;">If only because it is different than the universal access to fuel stations enjoyed by gasoline-powered vehicles, these compatibility differences can be an obstacle to widespread EV adoption.</span> <p><img decoding="async" class="aligncenter size-full wp-image-473" src="http://evchargingsummit.com/blog/wp-content/uploads/2023/01/Governing-dot-com.jpg" alt="" width="840" height="438" data-wp-pid="473" srcset="https://evchargingsummit.com/blog/wp-content/uploads/2023/01/Governing-dot-com.jpg 840w, https://evchargingsummit.com/blog/wp-content/uploads/2023/01/Governing-dot-com-300x156.jpg 300w, https://evchargingsummit.com/blog/wp-content/uploads/2023/01/Governing-dot-com-768x400.jpg 768w" sizes="(max-width: 840px) 100vw, 840px" /><em><span style="font-weight: 400;">(Image Source: </span><a href="https://governing.com"><span style="font-weight: 400;">Governing.com</span></a><span style="font-weight: 400;">)</span></em> <h3><strong>8. Grid Capacity</strong></h3> <p><span style="font-weight: 400;">Changing to EVs means millions of people will rely on the electric grid in new ways, and grid capacity will need to increase to avoid strain. Experts vary on how much additional power we’ll need, but the U.S. Department of Energy has predicted a </span><a href="https://www.washingtonpost.com/science/electric-cars-will-challenge-state-power-grids/2020/01/24/136a2a30-32e6-11ea-a053-dc6d944ba776_story.html"><span style="font-weight: 400;">38 percent increase</span></a><span style="font-weight: 400;"> in electricity consumption by 2050, primarily due to EVs.</span> <p><span style="font-weight: 400;">The Energy Institute at the University of Texas assessed the electrical demand needed if each state converted all personal cars, trucks, and SUVs to plug-in EVs. They found that statewide energy consumption would increase by a low of </span><a href="https://www.washingtonpost.com/science/electric-cars-will-challenge-state-power-grids/2020/01/24/136a2a30-32e6-11ea-a053-dc6d944ba776_story.html"><span style="font-weight: 400;">17 percent (Wyoming) to a high of 55 percent (Maine)</span></a><span style="font-weight: 400;">. Most states fell in the 20-30 percent range. Only some states have excess capacity to meet increased demand with existing infrastructure. </span> <h3><strong>9. Charging Station Financing and Ownership</strong></h3> <p><span style="font-weight: 400;">Public EV charging stations </span><a href="https://evchargingsummit.com/blog/how-much-does-installing-an-ev-charger-cost/"><span style="font-weight: 400;">can be expensive to install</span></a><span style="font-weight: 400;">, with components ranging in cost from </span><a href="https://www.eesi.org/articles/view/on-the-move-unpacking-the-challenges-and-opportunities-of-electric-vehicles"><span style="font-weight: 400;">$2,500 for a Level 2 charger</span></a><span style="font-weight: 400;"> to as high as </span><a href="https://www.eesi.org/articles/view/on-the-move-unpacking-the-challenges-and-opportunities-of-electric-vehicles"><span style="font-weight: 400;">$36,000 for a DC fast charger</span></a><span style="font-weight: 400;">. That doesn’t include installation or “soft expenses” such as obtaining permits and connecting with utilities. </span> <p><a href="https://www.nytimes.com/2019/06/22/business/energy-environment/electric-cars-charging.html"><span style="font-weight: 400;">Automakers</span></a><span style="font-weight: 400;">, </span><a href="https://www.nytimes.com/2019/06/22/business/energy-environment/electric-cars-charging.html"><span style="font-weight: 400;">power companies</span></a><span style="font-weight: 400;">, and business owners (parking lots, garages, shopping centers, etc.) usually pay for charging station construction to attract EV users. Tesla’s supercharger network and Volkswagen’s </span><a href="https://www.electrifyamerica.com/how-ev-charging-works/"><span style="font-weight: 400;">Electrify America</span></a><span style="font-weight: 400;"> program are among the nation’s largest commercial networks, with each company spending about $2 billion on its network. </span> <h3><strong>10. Charging Price Structures</strong></h3> <p><span style="font-weight: 400;">EV charging includes several different pricing structures, unlike gasoline which is always priced by the gallon. This difference can result in inconsistent pricing and inflated charging costs, which can create barriers to adoption due to consumer frustration and negative experiences.</span> <p><span style="font-weight: 400;">Utility regulators set consistent rates per kWh for home charging. Public charging stations may include per-session fees, per-minute fees, or tiered pricing based on charging speed. EV drivers typically favor the </span><a href="https://electrek.co/2019/08/12/kwh-pricing-ev-drivers-miss-benefits/"><span style="font-weight: 400;">per-kWh pricing structure</span></a><span style="font-weight: 400;">, which seems closest to the per-gallon pricing structure they’re used to. Some states combine per-kWh pricing models with tiers based on charging speeds. </span> <p><b>Are you interested in learning more about opportunities for your business in EV Charging? Join us at the upcoming </b><a href="http://evchargingsummit.com/"><b>EV Charging Summit & Expo</b></a><b>!</b> <div class="wpsso-rrssb wpsso-rrssb-content wpsso-rrssb-pos-bottom" id="wpsso-rrssb-content-post-470"><div class="wpsso-rrssb-limit wpsso-rrssb-content-limit" style="max-width:944px; margin:0 auto;"><div class="rrssb-buttons-cta en_US">Find this content useful? 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