Electrification Issues and Challenges

The electrification of vehicles has potential sustainability and cost advantages, but a range of issues must be addressed to realize this potential. Vehicle and fuel technologies interact in a complex system that includes vehicle technologies, battery technologies, fuel types and energy generation technologies, all of which determine the potential impacts on the environment and energy security. A total life-cycle view is needed to inform the best long-term decisions.

Costs and Savings

The current cost of plug-in vehicles is substantially higher than that of conventional vehicles, largely due to the cost of batteries. A study by the Boston Consulting Group projected that in 2020, even after costs have come down, a battery for an electric car with an 80-mile range will still cost about $14,000. Depending on electricity costs, however, the fuel cost for an all-electric car is in the range of 2 to 3 cents per mile, compared to about 8 to 10 cents1 per mile for a conventional gasoline-powered vehicle. So, lower operating costs can help offset the higher initial costs of EVs.

Automakers will need to invest billions of dollars to develop next-generation electrification technologies and electrified vehicles. Governments will also need to invest by encouraging and facilitating the development of technology and infrastructure and providing incentives for consumers to buy EVs.

Battery Technology

Current-generation HEVs run on nickel metal hydride batteries, which offer significant improvements over traditional lead-acid batteries. For example, nickel metal hydride batteries deliver twice the power output for the weight compared to lead-acid batteries. Nickel metal hydride batteries have worked well in non-plug-in hybrids, which are designed to allow for constant discharging and recharging and are not expected to store and provide large amounts of energy. These batteries are reaching the end of their advancement potential, however, and new battery technologies are needed to improve on the current generation of HEVs.

PHEVs and BEVs make significant additional demands on battery technology. Unlike HEVs, PHEVs are designed to maximize battery usage for optimum fuel economy, and BEVs are designed to run solely on battery power. The batteries used in PHEVs and BEVs must function well in a wide range of conditions; tolerate running until nearly depleted and then being fully charged; store and provide a lot of power; last a minimum of 10 years or 150,000 miles; and, ideally, be compact and lightweight.

Automakers are moving toward lithium-ion batteries for next-generation HEVs and for PHEVs and BEVs. These batteries have greater energy density and are lighter in weight than nickel metal hydride batteries However, the technology is still evolving, and costs must drop considerably before they can be widely used (see Battery Evolution).

It is also important to develop adequate recycling programs for batteries at the end of their useful lives.

Battery Evolution

Battery technology is evolving. This comparison shows how new battery technology, such as the nickel metal hydride batteries in today's Hybrid Electric Vehicles (HEVs) and the lithium-ion battery technology of next-generation electrified vehicles compare to the traditional 12-volt lead-acid battery.

Recharging

To maximize their all-electric range, plug-in vehicles must be charged regularly (every 30 to 50 miles of electric-powered driving, with current technology). They can be charged using standard household electric current but charge faster with higher-voltage electric service. Since electricity supplies are ubiquitous in developed countries, much of the needed infrastructure already exists, but new charging facilities will be required in public places as well as apartments and homes that lack accessible places to plug in. Other recharging options under consideration include battery-swap stations and inductive charging, where batteries are charged without a plug through "wireless recharge." This latter type of recharging could occur in special parking spots or even in "charging lanes" that could be included in roadways in the future.

Another focus of research is on rapid-charging technologies. Ideally, an electric vehicle could be charged in the same amount of time it takes to fill a fuel tank. At this time, rapid-charging typically shortens the life of a battery, but efforts are underway to develop cell technologies capable of rapid recharge in the future.

These and other charging options are all under consideration. Having an understanding of these technologies and how they may develop will be important to making electrified vehicles practical and affordable.

Environmental Benefits

Full BEVs are considered "zero emission" because they don't release greenhouse gases or other pollutants during use. But that term can be misleading: Operating an electric vehicle does cause emissions, but the location of the emissions is shifted from the vehicle to the power plant. A PHEV or BEV run on the current mix of power sources in the U.S. electrical power grid, for example, has no significant emissions advantages over an HEV. The reduction in vehicle fuel consumption resulting from the operation of a BEV or PHEV does result in a proportional reduction in those pollutants generated by burning petroleum fuel in the vehicle itself. However, replacing gasoline with electricity generated from coal, for example, would have limited emissions benefits, as the burning of coal to produce electricity generates carbon dioxide and other emissions such as nitrous oxides, sulfur dioxide, volatile organic compounds, carbon monoxide and particulate matter.

Thus, the promise of electrification is most fully realized when vehicles are powered by clean – ideally renewable – sources of electricity, which would reduce emissions substantially. To truly reap environmental benefits through the electrification of the transportation sector, the power-generation sector must act quickly to clean up emissions from the existing power grid. This would require a shift away from coal-based electricity to natural gas, renewables and other cleaner-burning alternatives, and/or the rapid development and deployment of carbon-sequestration technology.

Since demand for electricity fluctuates (generally peaking in the afternoon and dropping off at night), utilities typically use a mix of fuels and power plant types to meet demand. That means that the environmental impacts of electric vehicle use will vary depending on where and when they are charged. During certain seasons and times of day, utilities may have excess capacity. Charging PHEVs and BEVs at those times can increase the overall efficiency of the electric grid. But if PHEVs and BEVs are charged at peak times, that could create demand for additional power plants. Utilities have a role to play in educating electrified-vehicle users and providing them with incentives to charge their vehicles at the most beneficial time. The development of "smart grid" technologies, which can provide utilities and customers with more real-time information on energy use and energy prices, is another key enabler of efficient electric vehicle charging and energy consumption.

An intriguing possibility is that the batteries in electric vehicles could be used to store excess electricity, helping to smooth the peaks and valleys of production. They also could be charged with electricity from small individual generation units, such as household solar electric and wind power systems. Then the renewable electricity stored in the vehicle battery could be provided to the electric grid when needed.

With all these variables, utilities will be key partners in defining and developing electricity supply systems for EVs that are efficient, affordable and environmentally sound. That's why Ford has partnered with Southern California Edison, the Electric Power Research Institute and a number of other utilities for its PHEV pilot program (described in Ford's Electrification Strategy).