Although technological progress has been made in renewable generation and storage technology, the sharp rise in demand for electricity from other sectors is leading to a significant increase in electricity prices in Europe. As a result, the operating cost advantage of battery electric vehicles (BEVs) compared to vehicles with combustion engines shrank considerably despite the cost of eFuels, especially when importing them. Furthermore, rising raw material prices led to continued high purchase prices for BEVs.
OEMs equip BEVs with low battery capacities in order to reduce the high prices of battery electric powertrains, which limits range and charge speed considerably. Besides suffering from high material cost, the European economy growth as well as innovation is stagnating. At the same time, high wages are leading to increasing production abroad. This benefits low-wage countries in particular, which are investing in the infrastructure, the education system and the administrative structure through the additional income (partly even from eFuel exports) and are therefore becoming more attractive as production locations in general. One effect of the reduced economic performance in Europe is reduced investment in infrastructure. Beside the high costs, the stalled expansion of the charging infrastructure, leads buyers to not consider battery electric powertrains as attractive.