As electricity prices soar and geopolitical tensions increase, especially with the situation in Ukraine, the push for a greener future seems to be slowing. What does this mean for the future of electric vehicles (EVs)? And is it still worth owning an EV? Here are some insights on current trends and ways to cut costs.

The Impact on Everyone

Nothing in the world seems to be as it was, and going back to “normal” no longer feels feasible. The past few years were just a prelude to the current state: first, the pandemic shook supply chains, and now geopolitical tensions are disrupting well-established trade networks. The auto industry is facing unprecedented challenges—securing parts, sourcing essential metals, and planning for future crises.

The price of rare metals has skyrocketed, which forces EV manufacturers to raise prices. Nickel prices, for instance, jumped by 250% in just two days recently, stalling trade. However, there’s a silver lining: these price hikes are accelerating the development of next-generation battery technologies, like sodium-ion, which don’t rely on nickel or cobalt. But traditional fuel cars won’t be spared either—prices for platinum and palladium used in catalytic converters have surged, and aluminum prices are at record highs.

Some Hit Pause, Others Push Ahead

Recent automotive news is filled with concerning reports: Porsche has paused production of the Taycan, Volkswagen has shut down two EV factories in Germany, and other manufacturers are facing disruptions. Tesla, however, seems to be at an advantage. By year’s end, Tesla may gain a significant boost from its Texas factory, potentially allowing it to outproduce General Motors and Ford combined. Yet, as COVID-19 continues to impact China, Tesla’s Shanghai plant has had to announce temporary shutdowns.

With the global move to reduce dependency on Russian fuel, this could actually give electric mobility a boost. Western governments are working to accelerate the shift to renewable energy, reducing reliance on fossil fuels. While these solutions are complex and expensive, renewable energy’s share in global electricity production is steadily increasing, and this trend is unlikely to reverse.

Rising Oil Prices Push Consumers Toward EVs

The recent spike in oil prices has highlighted the instability of traditional fuels, prompting many to look toward alternatives. This shift could mean EVs are no longer just for the wealthy—driving on electricity, particularly from home charging, is cheaper. A major price comparison published in Delfi Business highlights this. And why not consider a bicycle as a secondary vehicle to reduce car usage and associated costs? While there are limits (cold weather, long commutes, and larger loads), there’s little to argue against biking. Beyond health benefits, bicycles are inexpensive to maintain. In these challenging times, outdoor exercise is a natural way to boost endorphins and improve mood.

A Glimpse Into a Fuel-Free Future

What’s next? It’s uncertain, and even if tensions ease, the recovery period may be long. However, according to Taavi Veskimägi, electricity appears to be a stable resource. Elering has spent 10 years preparing to disconnect from the Russian power grid and could switch to synchronous operation with mainland Europe within hours. Meanwhile, significant investments are being made to adapt the grid for renewable energy producers, says Jaak Aab. But when it comes to fuel, the outlook remains murky, with potential challenges on the horizon.