The benefits of electric vehicle ownership have been increasingly promoted and discussed over the years, tasked with replacing the outdated and environmentally-unfriendly internal combustion engine. But is this vehicle really ready to make its competition obsolete yet? Below we will talk about some of the less discussed issues and concerns with EV’s to help you make an informed decision.
Access to EV chargers
While the EV price-point is becoming more accessible to the average person, the infrastructure required can still making owning an EV either expensive or inconvenient. One of the biggest examples of this is access to chargers or charging stations.
As Australian major cities grow, a growing percentage of Australian’s are living in apartment buildings or townhouses etc. with no off-street parking. This can make access to chargers complicated. There is usually no access to power points in apartment carparks, and many buildings would not appreciate/allow vehicle chargers to be run on communal power. Installing EV charging stations in apartment buildings is not practical on a larger scale even if it could be afforded.
Some EV owners without driveways are trying to run electrical cords out to their vehicles parked in the street, which can create all sorts of safety hazards or potential legal issues.
Competition for communal EV fast-charging points is just going to increase as these vehicles continue to increase their market share. There are also concerns over battery longevity when consistently using fast-charging stations (more on this below).
In major cities many people cannot afford to have the off-street parking needed to conveniently charge their EV. But rurally where property prices allow the space needed, the concerns over distances and limited driving ranges still make EVs unviable for many.
Trade in value
While EVs are still a new phenomenon, and the data on used EVs is much more limited than their internal combustion engine counterparts, there are still some concerning trends developing for those looking to sell their EV. The used car market still has concerns with the longevity of these vehicles, which along with other factors are driving down the price of 2+ year old EVs.
Drive.com.au said on the topic “while electric cars less than two years of age retained a respectable 82.8 per cent of their original value when resold in December 2023, electric cars between two and four years old held on to just 57.6 per cent of their value, while electric cars five years of age or older were worth less than 25 per cent of their original purchase price when resold.
For comparison, the average retained value across the entire used-car market for vehicles between two and four years old was 85.9 per cent, meaning EV value retention was well below the market average.”
This can be more problematic for those looking to novated lease/salary package an electric vehicle. While government FBT exemptions on electric vehicles make this finance option very attractive, the Australian Taxation Office set the minimum residual values for novated leases. Currently these are above the average retained value of an EV after it is more than 2 years old.
This means EV owners financing their new car for more than 2 years will likely owe more money on the finance than what their car is worth. And the stats are currently showing that the longer the finance term, the further behind people fall.
Used EVs take longer to sell. Australian sales data for 2023 collected by Autograb/Australian Automotive Dealer Association showed “the average days to sell for used EVs reached 75 days in December, the highest average compared to the rest of the used car market.”
Battery degradation
The current industry/warranty standard on EV batteries is around 70% of maximum battery capacity after 8 years. This is significantly better than other rechargeable batteries (phones/laptops etc.) due to the complex battery management systems in EVs. But it is still a significant impact on the driving range of older EVs, which can already be one of the main drawbacks for potential buyers.
How often, how much and the method used to charge EVs can all impact the battery longevity. Depending on the type of lithium-ion battery used, consistently charging your battery above 80% or letting it fall below 20% will have a negative impact.
Frequent use of DC fast-charging stations compared to overnight AC charging through a wall outlet can also have negative impacts.
Carexpert.com.au said “DC fast charging results in high currents being created within the battery, which in turn increases the battery temperature, burdening it with additional strain that could degrade the longevity of the battery”.
Battery life is also affected by severe weather too. While the largest limitations for battery range/life are below 0°c, rarely a concern in Australia, hotter temperatures can impact them too. The Scientific American said “when outside temps reach 95 degrees F (35 degrees C) and drivers crank up the air conditioning, driving range can decrease by 17 percent” according to an American Automobile Association report from 2019.
Environmental concerns – disposal of batteries
The average EV battey weighs around 450kg (1000lbs), with longer-range batteries weighing more. Tesla batteries start at roughly 480kg (1060lbs) on the Model 3, with the heaviest being the Model Y SUV (770kg/1700lbs).
As the EV market share increases in Australia, and we see a big increase of batteries at the end of their life due to age/accidents etc., the country is not equipped to recycle these batteries on such a large scale. This has led to calls for concern and action from many, including the waste and environment sectors.
Some EV batteries are already ending up in landfill and are already creating very serious fire risks. “A projected increase of EV and home battery sales from 100,000 tonnes next year to 800,000 tonnes in a decade’s time could bring a surge in the risk of “catastrophic” fire” said the ABC.
“The intensity of a fire from an energy storage unit or EV battery is exponentially more significant than a small consumer battery”.
Image courtesy of drive.com.au
By 2030, end of life EV batteries (light blue) will become the largest source of batteries that need to be recycled as globally the supply of waste batteries is increasing exponentially.
The National Electrical Vehicle Strategy (NEVS) released in 2023 has outlined a commitment to research and develop a “recycling, reuse and stewardship initiative for EV and other large format batteries”, but what results from this still waits to be seen.