‘We’re Not There Yet’: The Booming Electric Car Market Still Has A Long Road Ahead Of It

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Electric vehicle sales are at an all-time high and should reach 1 million units in 2023, but will remain de facto luxury purchases owing to high battery costs.

.S. drivers bought electric cars and trucks at a record rate in 2022, heralding double-digit growth in 2023 as major automakers and startups roll out eye-catching new models. But high sticker prices, costly batteries and lingering concerns about charging infrastructure will continue to constrain growth—particularly outside of California.

The Golden State, which has pushed carmakers to sell electric vehicles since the 1990s to help ease persistent air pollution problems and cut carbon emissions, is a different country relative to the U.S. overall when it comes to battery-powered vehicles. Through the first three quarters of 2022, 15% of all new autos sold in California were electric, triple the national rate.

“From a raw materials perspective, lithium will continue to constrain EV demand until the end of 2025 or early 2026,” said Cameron Perks, senior analyst for London-based Benchmark Minerals, which tracks battery metals. “Expect sustained higher prices until that point.” “Historically, if you look at vehicles priced from $55,000 and north you’re basically talking about just 3% to 5% of car buyers that can afford them,” said Eric Noble, founder and president of automotive consultant The CARLAB. “That's the total addressable market.”

 

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So what did you expect!

This headline makes it seem like we're close... And that it's a good thing to have so many EVs.

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