How the Ukrainian Crisis Could Affect the EV Market

< Back
March 6, 2022
September 9, 2022
8:30 pm
12:16 pm
Electric Car Charging

How the Ukrainian Crisis Could Affect the EV Market

As the conflict in Ukraine continues to escalate, concerns over how a prolonged incursion may affect global markets has become a frequent topic of discussion, even as major world powers issue a raft of sanctions against Russia in an effort to end the conflict sooner. There are certain to be ramifications for the EV industry specifically as a consequence of the dispute, some of which we’re already starting to see, although their duration and severity are still in question. Here are some of the most prominent.

A Spike in Gasoline Prices

The cost of gasoline has steadily been rising in 2022 thanks to myriad factors, from a reduction in domestic drilling to a surge in demand as the economy comes back to life from lockdowns. According to AAA, the average price of a gallon of regular unleaded hit $3.55 on February 28th, a full 79 cents more than the average at the end of last February. Because the US is relying more on oil from parts of the world directly and indirectly affected by the conflict, the price of crude could rise even higher in coming months. While pain at the pump is a very real thing for many Americans, it may also accelerate their transition to electric vehicles where fuel savings could be substantial. We continue to install chargers along the West Coast at a rapid pace in anticipation of this coming surge.

Supply Chain Issues in Auto Parts Manufacturing

Recently, Volkswagen announced a production moratorium at two EV plants in Germany because the conflict has delayed delivery of key manufacturing components, including wire harnesses that come largely from Western Ukraine. This is on top of semiconductor shortages that have already adversely affected auto manufacturing around the globe, so additional interruptions in the supply chain are likely to exacerbate problems with many EV producers, not just VW. According to the Wall Street Journal, Renault, Toyota, Ford, BMW and Porsche are also facing component shortages, although the impact on their EV operations is not yet fully clear. While a reduction in available EVs would certainly delay a widespread transition to electric, we believe the affect will be short-lived as suppliers set up alternative manufacturing facilities in the event the conflict is excessively prolonged.

Adverse Impact on Critical Metals

The UK-based Institution of Engineering and Technology claims the EV industry is likely to see significant headwinds because “rare-earth metal prices will skyrocket as [the] Ukraine-Russia tensions continue.” Neodymium and dysprosium, used in 80% of magnet-based EV motors, may face supply deficiencies as a result of delayed mining operations and air transport restrictions. Moreover, Ukraine is the world’s third-largest producer of nickel and aluminum, both critical to EV batteries, and the nation accounts for nearly 70% of the world’s neon gas used in automobile computer chips. Now, while disruptions in the supply of these metals will slow EV output, many automakers are already investing in new battery technology that eschews reliance on imported metals that involve complex processing, hazardous byproducts and trade with hostile partners. The culmination of this may be years away, but the clock has started.

Climate Initiatives Lose the Spotlight

The major media consensus is that the conflict is drawing attention away from the climate debate, especially as scientists prepared last week to release a UN climate report whose results Reuters described as “sobering.” A recent Forbes article titled “Ukraine Crisis is Terrible News for Climate Policy” notes the Senate is discussing a suspension of the federal gas tax that funds cap-and-trade, and domestic shale fracking is increasing to offset pricey oil imports. While these effects are not ideal, we also see this as an opportunity to draw attention to our overreliance on fossil fuels and the fact that a shift to clean energy alternatives would lessen our dependence on foreign countries where political tensions are more likely.

Back
26
Oct
/
22
26
October
/
22
Electric Vehicles
Electric Car Charging

How EVCS is Addressing the Surging Demand for EVs

The EV world has much to celebrate this year. It seems we’ve reached a turning point. While the overall number of new vehicles sold in America between Q2 2021 and Q2 2022 slumped by 20%, EV sales during that same period jumped over 66%, according to figures released by Cox Automotive. This comes on the heels of a larger global trend, with worldwide EV shipments up 79% year over year.

READ MORE
26
Oct
/
22
26
October
/
22
Press
News
Electric Car Charging

ABC7 Interview with EVCS: Making the switch to an EV? This company uses subscription pricing to ease cost at charging stations

LOS ANGELES (KABC) -- With lots of electric cars already on the road, and potentially millions more to come, one of the related issues is charging infrastructure. Can it work?

READ MORE
10
Oct
/
22
10
October
/
22
Electric Car Charging

The Race to Democratize Charging Infrastructure

According to McKinsey & Company, “As the number of EVs on the road increases, annual demand for electricity to charge them would surge from 11 billion kWh now to 230 billion kWh in 2030… Modeling indicates that nearly 30 million chargers would be needed to deliver so much electricity in that year. While most of these chargers would be installed at residences, 1.2 million would [need to] be public chargers.” More importantly, these public chargers must be targeted to drivers of all ages, genders, races, cultures, income levels and geographic segments. As such, EVCS has identified three primary areas necessary to increasing the democratization of charging infrastructure:

READ MORE
20
Sep
/
22
22
September
/
22
Electric Vehicles
Electric Car Charging

Navigating California’s New EV Mandate

California’s going all in on electric. On August 25th, Governor Gavin Newsom made a very important announcement concerning the future of transportation in the Golden State: “We can solve this climate crisis if we focus on the big, bold steps necessary to cut pollution. California now has a groundbreaking, world-leading plan to achieve 100 percent zero-emission vehicle sales by 2035.” Big and bold, indeed. And while highly encouraging, it brings up a number of questions moving forward.

READ MORE
16
Aug
/
22
9
September
/
22
Electric Car Charging

How EVCS is Repairing Reliability Concerns

One of the biggest concerns among EV drivers today is the reliability of public chargers. One recent survey from the Department of Bioengineering at UC Berkeley claims as many as 23% of public chargers in the Bay Area alone are, as Wired sums up, “nonfunctioning at any given time, stymied by broken screens, shoddy credit card or payment systems, network connection failures, or damaged plugs.” And that’s in a locale prioritizing the conversion to electric. Testimony from motorists seems to corroborate these findings. A CEC survey of 1,290 EV drivers found that fully 60% had experienced damaged or inoperable chargers, while almost half needed assistance from customer service. We find this wholly unacceptable and have taken measures to ensure that chargers in the EVCS network rise to the standard of operability our customers expect. Here are a few ways we’re doing that:

READ MORE