Experts fear that rising energy costs could endanger the future of electric vehicles

According to German industry leaders, the future of the electric automobile is in jeopardy due to rising energy costs.

The manufacture and sales of automobiles are being significantly impacted by an increase in power costs, as well as in the pricing and availability of raw materials, a persistent scarcity of components, and a general decline in disposable income.

Up until recently, buying an electric automobile had become more and more appealing as gas prices soared. However, the price gap has narrowed following recent increases in power costs, which in Germany increased by around a third from a year earlier.

Owners of electric vehicles have experienced price increases of 10% or more, whether they charge their vehicles at home or through agreements with charging companies. Given that the price of energy is correlated to that of gas, which has become increasingly scarce ever since Russia cut off its gas supply to Germany about two weeks ago, further price increases are anticipated.

One of Germany’s biggest operators of charging stations, Allego, increased its rates at the beginning of this month from 43 cents to 47 cents per kilowatt hour. While the quickest, so-called ultra-fast charging, has increased from 68 cents to 75 cents per kilowatt hour, express charging by continuous current has gone up from 65 to 70 cents.

“The electricity price explosion could end up being an acute danger for vehicle transition, and we need to be damn careful about it,” According to the automobile economist Stefan Bratzel.

“If electric cars become more expensive to use, the surge in electric mobility is in danger of collapsing, because hardly anyone is going to buy an electric car,” Bratzel added.

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