The electric car should be cheaper, but Spain still does not know how - My Blog
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The electric car should be cheaper, but Spain still does not know how

The electric car is not cheap and Spain knows it

The electric car is having a hard time taking off in Spain, and the fact that it is cheaper is not exactly its great strength. With less than a decade to go before the first deadline given by the European Union for the electrification of its automobile fleet, our country currently only has approximately 180,000 electric vehiclesstill far from being able to meet the goal of reaching five million before 2030.

With hybrids gaining more and more market share, electric and plug-in hybrids face various present and future challenges in order to reach the public. No one will be surprised if we say that our country is in the queue stalls in the implementation of electric mobility.

The high prices and the lack of an operational and reliable public charging network weigh down sales that we will need for the coming years. The report prepared by the Grant Thornton audit makes clear the problem that Spain has, which in turn has one of the oldest automobile fleets in the European Union. Now, what about the challenge of making the electric car cheaper? Little or nothing, because our country has not yet found the solution.

What about cheap batteries

The automobile sector plays a key role in the Spanish economy, with a weight of approximately 10% of GDP, according to data from the Ministry of Industry. In 2020, the latest data collected, Spain was the second largest European automobile producer and the eighth worldwide.

However, now it must ensure adaptation so that 100% of the vehicles produced do not emit gases that contribute to global warming, which is why the automotive industry faces a colossal challenge that is added to the fact that the electric car be cheaper… But he does not get it.

This is an important ballast, since it is significantly greater than that of gasoline or diesel cars, although it is expected that by 2025 these will be similar to those of combustion cars. The main reason will be the cheaper batteries, which is the component that has the most impact on the final price.

Cheap electric car battery price

Thanks to this, it was presumed that electric cars would end up dethroning the competition by mere market force. But things are not going as expected. This is because these units determine a considerable part of the price of the electric car so that it can be cheaper. And its composition, generally based on metals such as lithium or nickel, exposes them to the lurches in the price of these elements. Specifically, high-purity lithium has more than tripled its price in recent times, while that of nickel, graphite or cobalt has more than doubled.

His ‘boom’ will arrive when they cost between 25,000 and 40,000 euros

In recent times, however, the contraction of the supply of raw material coming from Russia. However, achieving this objective happens first because the research and industrial development of the electric car is advancing rapidly in greatly reducing the production costs.

All so that, finally, this translates into a more affordable price for the consumer. Although numerous and substantial aids are being approved to go down this path, it will be a challenge to meet the deadlines that each country imposes.

All this is done because most manufacturers have started launching electric cars with prices that exceed 40,000 euros, leaving the cheapest with autonomy that limits their use on the road. In summary; the ‘boom’ of the electric car will arrive when these cost between 25,000 and 40,000 euros with more than 400 kilometers of autonomy. It is working on it.