JOHN F. FLOYD COMMENTARY: Electric vehicles are coming; public knows little about them
The electric car, as a primary means of world transportation, is only a few short years away. Car manufacturers, adhering to United States mandates, are forcing the electric car on a general public that knows little or nothing about their new mode of transportation.
Suffice it to say, the new electric cars and trucks are nothing more than big golf carts with all the accessories enjoyed by the general public. The only difference is the power train, which is, arguably, dramatic.
Even the cheaper models of electric cars have a performance value associated with their operation. If you have ever driven a golf cart, the acceleration is immediate and the cart is at top speed almost at once. The power train, motor and transmission, have 30% fewer parts than a gas-powered automobile. The 30% fewer parts does several things to the cost of the car or truck.
Because the vehicle takes 30% fewer parts, it takes a corresponding reduction in manpower. This reduction in manufacturing cost is huge in an industry that pays the wages and benefits enjoyed by the employees of the various car companies.
I wonder how the United Auto Workers union will cope with the associated job losses brought about by the mandates of the Biden administration? One of the more important mandates is to accelerate the change to electric vehicles.
It would be interesting to see a cost study done by one of the automotive companies comparing like vehicles — an all-electric version compared to a conventional gas-powered vehicle. The difference in manpower requirements should be substantial.
There is probably a large difference in material costs as well. The cost of the body and all the accessories should be comparable with the difference in the drive trains, electric vs. conventional. The only unknown cost would be whatever the company assigns as development costs.
This study would provide the American public the answer to how much or how little the change to all-electric vehicles will affect the cost. It is surprising no automotive magazine has asked for this specific monetary comparison.
The cost of an electric vehicle will fluctuate with the cost of the mineral lithium. Most major automakers are using lithium to produce batteries with high useful expectations. Today’s 100% battery-powered cars have a range of 300 to 350 miles, and battery manufacturers are working hard to increase the range.
Scott Patterson in a Wall Street Journal article stated, “China now accounts for 79% of the production of lithium-ion cells compared to 7% in the United States and 7% in Europe. China produces about 80% of the chemicals used in lithium-ion batteries, according to Benchmark Mineral Intelligence.
“Mineral Intelligence tracks the battery supply chain,” Patterson wrote. “The Biden administration and private investors are trying to reverse that. They are funding battery startups, developing lithium mines in the U.S. and aiming to cut the cost of batteries for the electric grid by 90% within the decade.”
The demand for lithium is expanding exponentially. The demand for this rare earth material for cellphones and laptop computers and by automotive manufacturers is outstripping the supply.
By 2032, at least 50% of vehicle sales will be electric vehicles powered by lithium batteries. As a comparison, the smallest electric vehicle, the Nissan Leaf, uses 20 pounds of lithium in its battery, while a bigger automobile, such as a Tesla, uses more than 350 pounds.
The only lithium-producing mine in the U.S. is near Silver Peak, Nevada, a town of 142 people. It appears the Biden administration is trying to reverse the lithium problem by opening domestic mining operations.
No longer is it safe to export U.S. knowledge to foreign nations. No longer is it appropriate to chase the lowest-wage countries for strategic American products. The American citizenry may have to pay more for some products, but it will pay dividends in the country’s future.
U.S. companies’ pursuit of cheap wages and costs in foreign countries is not working so well for the American people or our country. U.S. business had better wake up to reality, or there will no longer be businesses as we know them.
John F. Floyd is a Gadsden native who graduated from Gadsden High School in 1954. He formerly was director of United Kingdom manufacturing, Goodyear Tire & Rubber Co., vice president of manufacturing and international operations, General Tire & Rubber Co., and director of manufacturing, Chrysler Corp. He can be reached at johnfloyd538@gmail.com. The opinions reflected are his own.
This article originally appeared on The Gadsden Times: John F. Floyd looks at electric vehicles
