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Electric Vehicle Market Speeds Forward in Local Areas

The electric vehicle market had more barriers five years ago. But a rise in charging station infrastructure and a decline in costs are spurring an increase in electric vehicle ownership in areas across the country.

electric vehicles parking lot
Thousands of new cars are stored at the Toyota logistics service yard at the port. (Robert Gauthier/Los Angeles Times/TNS)
TNS
(TNS) — Joe Sullivan drives a Tesla Model 3 and is one of the growing number of Mankato residents who has an electric vehicle.

Sullivan, a member of the the Minnesota Public Utilities Commission, said he bought his EV two years ago because it's practical and could be a research project for him to study the benefits and drawbacks of having an electric car.

The electric vehicle market had more barriers five years ago. But a rise in charging station infrastructure and a decline in costs are spurring an increase in electric vehicle ownership in the area.

Local dealers report an increase in interest in electric vehicles. Some auto manufacturers have pledged to make their fleet all electric, increasing the availability of the vehicles on the market.

There's been a push from state agencies and legislators to increase accessibility to electric vehicles because transportation is one of the biggest sources of greenhouse gas emissions in the state.

But even as EVs become more popular, some disadvantages remain — including high upfront costs and a continued need for more infrastructure such as accessible charging stations. Experts say some of those issues will diminish as the market grows.

"As battery and upfront costs come down and as more infrastructure develops, these vehicles are going to take over," Sullivan said. "The advantages are so clear."

A GROWING INDUSTRY

Electric vehicles make up a small part of the auto market. About 2,800 electric vehicles were purchased in Minnesota in 2018, making up 1.14% of auto sales in the state that year according to EVadoption, an electric car research organization.

The electric vehicle market is growing, though, with EV sales in the state doubling from 2017 to 2018.

General Motors, one of the largest auto manufacturers in the country, announced in January its plan to sell only electric light duty vehicles by 2035. Other auto manufacturers are also working to increase their electric vehicle fleet.

The Minnesota Pollution Control Agency is in the process of adopting a rule that would require auto manufacturers to deliver more vehicles with zero tailpipe emissions, like EVs, for sale in the state, increasing each year. An administrative law judge is in the process of writing a report on the rule based on public feedback. If the judge approves the plan, the regulations would go into effect in January 2024.

A Climate and Energy omnibus bill moving through the state Legislature includes investments for the electric vehicle market, including funding for charging stations and rebates for EV purchases.

Hunter Ellis, a sales consultant for Mankato Volkswagen, has seen an uptick in demand for electric vehicles but said that inventory hasn't caught up yet.

Ellis specializes in Volkswagen's ID.4, an SUV that is the first global all-electric vehicle from the company. There are demos of the vehicle at Mankato Volkswagen, but the dealership won't have the vehicle for sale on the lot until next year. Ellis said there is already interest in the vehicle, with five to 10 customers having submitted orders or are in the process of doing so.

He anticipates even more interest once the vehicle is available locally. "Demand is going to continue as infrastructure grows," he said.

A barrier to the EV market for many is that these vehicles are often more expensive to purchase than gasoline-powered cars. While federal tax credits can help bring costs down, EVs can still have higher initial costs.

A 2021 Tesla Model S carries a starting price tag of $78,490. The cost of a new 2021 Chevrolet Bolt starts at $36,500.

Ellis said prices will go down as vehicles become more readily available on the market and that some companies, such as Volkswagen, are working to make their EVs more affordable.

Despite the upfront costs of buying an electric vehicle, local EV owners say the vehicles are cheaper than gas-powered cars over the long term because they are low maintenance and charging is less expensive than gas.

Sullivan estimates it costs about $4 to $5 to fully charge his Tesla. He also has had the vehicle for two years and has never had to bring it to a shop.

"From an operation and maintenance perspective, it doesn't break," he said of his vehicle.

A Consumer Reports study found maintenance and repair costs for EVs are about half of the costs of a gas-powered vehicle, which require regular oil changes and are more mechanically complex.

NEED FOR INFRASTRUCTURE

There are 80 electric vehicles and 71 hybrid vehicles registered in Blue Earth and Nicollet County, according to the Minnesota Department of Transportation, which tracks electric vehicle ownership in the state. Hybrid vehicles run on electricity and gasoline.

Charging-station infrastructure has been popping up in the community in the last few years at places such as the Children's Museum of Southern Minnesota and Goodwill. Tesla plans to install chargers at Target later this year.

Local EV owners say the growing number of charging stations has made it easier to have an electric vehicle, especially the increase in Level 3 chargers that can typically charge a vehicle in less than an hour. A shortcoming infrastructure-wise is that many available charging stations are Level 2, which can take four to 12 hours to fully charge a vehicle.

Lee Tesdell , a professor at Minnesota State University, drives a Chevrolet Bolt EV and commutes to work from Iowa. He was able to buy an EV in 2018 partly because he could charge his vehicle at MSU while he works.

"This is a perfect commuting car," he said.

Geoff Roise of Lindsay Windows can usually drive to the Twin Cities and back in his Tesla without having to charge his vehicle. If he does need a charge, he said, there are Tesla superchargers he can stop at to get a quick charge.

As infrastructure develops, Sullivan hopes to see more visibility around these chargers. When driving a gas-powered vehicle, he said it's easy to feel safe because you know there are gas stations everywhere and they are easy to spot.

To him, driving an EV can sometimes feel like being out in the middle of the ocean because there aren't always charging stations nearby and not much visibility of where the stations are. There is a lot more planning that goes into taking a road trip in his vehicle because he has to make sure charging stations are available that can help him get to his destination.

"I need the infrastructure built to make me feel safe," he said.

Ellis, of Mankato Volkswagen, said the fear of not having enough charge to get from point A to B, or range anxiety, is a big reservation people have around entering the EV market.

"There are actually more charging stations than people think," he said. "We just don't always see them."

Charging infrastructure continues to develop. The MPCA and various companies have been installing charging stations around the state. The bill going through the Legislature includes $4 million in funding for charging stations.

To combat the lack of visibility around EV infrastructure, apps and online forums are available for people to share resources.

"There is a very useful online ecosystem of EV drivers who share information," Tesdell said. He uses an app called PlugShare that helps users find nearby charging stations. Users can also leave comments to help others know if a charging station is out of commission.

"I see we are entering a new era where EVs aren't all that weird and strange anymore," Tesdell said. "I think we are going to see a lot more of them."

(c)2021 The Free Press, Distributed by Tribune Content Agency, LLC.