We may soon regret the radical and absolutist embrace of electric vehicles (EVs). Governments across the world are planning to ban sales of new petrol and diesel cars, and to take older, gas-guzzling vehicles off the road. The Biden administration is proposing strict new pollution limits, as well as vast state subsidies, to accelerate the US’s transition to EVs.
Replacing the massive $3 trillion global car industry is an extremely high-risk economic gamble, particularly for the West. It could also threaten the mobility of all but the richest among us.
The zealots and economic interests pushing an all-electric future generally ignore the challenges inherent in their plans. For one thing, despite promises of lower costs for EVs, the now enormous demand for key components, like lithium, copper and aluminium, means that prices are unlikely to fall any time soon. Battery prices alone will keep the price of EVs high, as the cost of components has risen threefold since 2021.
