Justin Sullivan/Getty Images
In a famous apocryphal story, Henry Ford insisted that it was economically wasteful for any car component to routinely outlast the car itself. There are even stories of him sending employees to car junkyards to identify troublingly durable components, so he could ensure they were built from cheaper materials in the future.
Turn this philosophy towards electric vehicles, and there is already a common perception that the batteries age poorly, so you are better off buying new. This contributes to the faster depreciation in value seen for EVs compared with petrol or diesel vehicles. Batteries are 99 per cent cheaper to build than they were 30 years ago, but they still account for about a third of the price of a new EV.
So it is welcome news, then, that as of this month, the average new EV on sale in the UK is cheaper than the average new petrol car. But new isn’t everything. In a twist that might displease Henry Ford, a recent report found EV batteries treated well should outlast the cars themselves, suggesting used EVs are a much better deal than they would first seem.
“
The average new EV on sale in the UK is cheaper than the average new petrol car
“
These aren’t the only reasons why EVs, both new and old, are becoming more commercially attractive. Most EVs are parked and plugged in for nearly 23 hours each day. Plans are now in place to use the batteries in those cars to temporarily store excess electricity sloshing around the power grid, with grid operators then paying EV owners when they need it back. This idea isn’t new, but, as we report here, a trial scheme in the US is now giving us an idea of how profitable it could be. The average EV driver could earn several thousand pounds each year.
It is arguably these sorts of economic calculations, rather than the notion of tackling climate change, that will do the most to accelerate the green transition. The Iran war fuel crisis, meanwhile, may also be encouraging EV uptake by making fuel-burning cars more costly to run.
Though the EV industry has had to deal with a slowdown in sales growth recently, it’s just possible that the road ahead will be a little clearer.
Topics: