Section 5
As the market develops, secondhand EVs are becoming a more viable option too. As business update their fleets of company cars, relatively new EVs are flooding the market ⁽²⁾ driving prices down.
So, what’s behind the price drop? Battery technology has improved significantly over the past decade and battery production has increased. In 2010, the average battery price was $1,200 per kWh ⁽³⁾. Today, it’s around $153/kWh ⁽⁴⁾. And by 2026, it is expected to fall below $100/kWh ⁽⁵⁾. EV batteries account for about 30-40% of the final product’s price tag, so, as battery tech continues to evolve, EV prices will become more affordable.
Look at what it costs to buy some of the most popular EV models brand-new (though various EV suppliers offer leasing options):
*These EV prices are accurate at the date of publishing this guide but may be subject to change and vary from country to country.
Home charging costs
Home charging is usually the cheapest way to charge your EV. But how much are we talking? First, you need to determine how much you pay per kWh on your electricity tariff. In most cases, your energy bill will have a kWh unit cost on it. If not, you can work it out by dividing your energy bill by the number of kWh you consumed. Next, multiply the battery size of your vehicle with the cost per kWh. That’ll give you a rough idea of how much a full charge of your EV will cost.
Don’t forget, electricity suppliers can offer variable tariffs. By taking advantage of time-of-use tariffs, you could reduce your charging costs by 24% ⁽⁸⁾!
Public charging costs (AC)
Public charging costs are difficult to break down as charging providers structure their prices differently. They’re usually composed of a connection fee, a price per kWh (the bulk of the price), a time-based fee, and a service fee.
Public charging apps like Plugshare ⁽⁹⁾ can come in handy when looking for pricing and availability info before starting a charge. The free mobile and desktop app includes stations in every major network across North America, Europe, and much of the globe. With the ability to leave comments about your charging experience like a Trust Pilot review, you can count on the EV-driving community to tell it like it is, so you don’t waste time heading to a station that’s priced incorrectly or wildly expensive.
As we’ve mentioned, the faster the charger the more expensive it’ll be — you’re paying for the convenience of speed.
Level 3 public charging costs (DC fast charging)
DC fast charging is the fastest and the most expensive way to charge your EV. Again, prices vary based on the charging station and provider, but you’ll pay either by the minute or by kWh consumed, plus a charging fee.
*Prices shown above are for illustrative purposes only. Actual charging costs depend on a range of factors.
You may also want to consider buying a home charging station. Prices range from £800 to £1,500 (€670 to €1,600/$300 to $1,200), depending on the power output, smart charging features, connectivity, and installation fees.
By their nature, EVs have fewer parts prone to wear and tear. However, if the worst happens and you need to replace the battery, this can be pricey (though it is incredibly rare). Looking at the Kia EV6, replacing its 77.4kWh battery would cost £9,136 ($10,449/€10,378 ⁽¹⁰⁾.
But it’s very unlikely and most EV manufacturers offer 8+ year warranties on their batteries. We’re also seeing more third-party warranty providers offering coverage for used EVs as well. One recent example is the RAC in the U.K., which launched its very own warranty program, especially for used EVs and hybrid cars. With RAC’s Electric Vehicle warranty, second-hand EVs will be covered for up to eight years, with 80,000 miles on the clock at the time of purchase.
UK
The Plug-in Car Grant ⁽¹¹⁾ can give eligible buyers up to 35% off the cost of an EV (up to £3,000 depending on the model).
Pure EVs under £40,000 are exempt from annual road tax ⁽¹²⁾.
The EV Home-Charge Scheme (EVHS) subsidizes 75% of the total cost of a home charging station ⁽¹³⁾ and installation fees for people who rent or own a flat.
US
The Inflation Reduction Act of 2022 includes a federal tax credit of up to $7,500 for most EV models ⁽¹⁴⁾ priced at $55,000 or less.
Most drivers can receive up to $4,000 of tax credit when purchasing a used EV ⁽¹⁵⁾ priced below $25,000.
Eligible individuals get 30% off the total cost of a home charging station ⁽¹⁶⁾, including installation costs.
*Subsidies are always changing. The figures above are correct at the time of writing, but as EVs gain popularity, governments reduce or remove subsidies. In the future, there will be no subsidies at all.
Manufacturing EVs, especially their batteries, has a greater impact on the environment compared to the production of typical gas-fueled vehicles, according to a study from the Massachusetts Institute of Technology Energy Initiative (MITei) ⁽²⁷⁾.
Currently, China leads the way when it comes to battery production around the world. Chinese companies make up 56% of the EV battery-production market ⁽²⁸⁾. But batteries made in countries like China are generally made in factories powered by fossil fuels.
Despite this, over time, the higher emissions generated during production are offset ⁽²⁸⁾ by an EV’s superior energy efficiency and the fact that they don’t pollute when they drive. If the energy used to power an EV comes entirely from renewable sources, it’ll offset that production CO2 in just a few years. Even when EVs are powered by a fossil-fuel electricity grid, their better energy efficiency means they produce far less CO2 per mile than a comparable ICE vehicle ⁽²⁹⁾.
While gasoline cars produce far fewer emissions during production compared to an EV, they continually create and emit toxic chemicals into the atmosphere, damaging the environment, and never fully offsetting their environmental impact.
What’s more, the constant exploration and drilling required to gather oil and produce gasoline and diesel has an environmental impact that no ICE vehicle will ever be able to escape. Until, we have carbon neutral synthetic fuels that is.
Next Section:
Life with an EV
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9. https://www.plugshare.com/
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11. https://www.gov.uk/plug-in-vehicle-grants
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14. https://www.fueleconomy.gov/feg/taxcenter.shtml
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20. https://www.rvo.nl/subsidies-financiering/sepp
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25. https://www.theguardian.com/global-development/2021/nov/08/cobalt-drc-miners-toil-for-30p-an-hour-to-fuel-electric-cars
26. https://electrek.co/2022/04/22/tesla-using-cobalt-free-lfp-batteries-in-half-new-cars-produced/
27. https://energy.mit.edu/research/mobilityofthefuture/
28. https://oilprice.com/Energy/Energy-General/China-Is-Dominating-The-Global-Electric-Vehicle-Battery-Market.html#:~:text=Currently%2C%20Chinese%20companies%20make%20up,come%20from%20the%20Chinese%20company
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30. https://www.theguardian.com/environment/2021/aug/20/electric-car-batteries-what-happens-to-them
31. https://www.ford.co.uk/hybrid-electric/charging/battery#:~:text=ELECTRIC%20CAR%20BATTERY%20RECYCLING,making%20electric%20vehicles%20more%20affordable
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33. https://www.wired.com/story/ev-battery-recycling-cobalt/#:~:text=The%20world%27s%20major%20electric%20car,supply%20chain%2C%20and%20fluctuating%20prices
