WHY ARE ELECTRIC CARS SO EXPENSIVE?
HOPE MAXWELL, VIA EMAIL
There are several reasons. The first is that there’s no economy of scale. While manufacturers have been making cars powered by internal combustion engines for over 100 years, mass-produced electric cars are still relatively new, with fewer factories able to make the specialised components. The costliest part of the electric car is the battery and worldwide shortages of lithium (an essential element in the lithium-ion batteries) have driven prices higher. Between 2020 and 2023 there was also a shortage of semiconductors (essential in these high-tech cars) caused by the COVID pandemic, extreme weather in Taiwan and the China-USA trade war, which pushed up prices even further.