The rise of electric vehicles (EVs) has brought about significant changes in automotive technology. As these vehicles grow in size and popularity, their batteries have expanded to offer extended range and enhanced performance. However, this trend may not be as environmentally beneficial as expected. Research published in the journal PLOS Sustainability and Transformation reveals that larger EVs are not substantially reducing greenhouse gas emissions compared to smaller EVs or traditional vehicles. The study highlights a concerning increase in battery weight and associated environmental challenges.
According to the research, the lithium-ion batteries in popular EV models have seen a 68% increase in weight over the past five years. Today, the average battery in the top ten selling EVs weighs around 595 kg (1,311 pounds). One of the largest models on the market, the GMC Hummer EV, boasts a battery weighing an impressive 1,326 kg (2,923 pounds), surpassing many conventional cars and even smaller EVs like the Fiat 500e. The combined weight of the ten best-selling EVs in the U.S. in 2023 is equivalent to one and a half times the weight of the iconic San Francisco Golden Gate Bridge. This substantial mass presents a formidable challenge for future waste management and hazardous waste disposal, especially given the limitations of current recycling technologies.
Larger EVs require approximately 75% more critical minerals than smaller electric cars, leading to a 70% increase in CO2 emissions during mineral processing, manufacturing, and assembly. This trend towards bigger batteries could hinder efforts to decarbonize the electricity grid due to higher energy consumption. Moreover, there is currently no viable economic model for fully recycling these batteries into new lithium-ion units, unlike the recycling processes for paper, aluminum, or glass.
As the size of EVs and their batteries continues to expand, the potential environmental benefits of adopting this technology are being undermined. Perry Gottesfeld, Executive Director of Occupational Knowledge International and author of the article, emphasizes the need for better consumer information to guide choices toward vehicles that genuinely reduce greenhouse gas emissions. To achieve true environmental sustainability, improved public policy, incentives, and messaging are essential to steer consumer demand towards smaller EVs. Aligning government subsidies and tax incentives with lifecycle greenhouse gas emissions can help drive this shift.
The expanding trend of larger EVs raises important questions about the balance between technological advancement and environmental responsibility. While the intention behind promoting EVs is commendable, it is crucial to address the unintended consequences of increasing vehicle and battery sizes. By focusing on smaller, more efficient EVs, we can make meaningful strides towards reducing carbon emissions and achieving long-term sustainability goals.
In a significant turn of events, electric vehicle (EV) startup Canoo has declared bankruptcy, marking the end of its ambitious journey. After accumulating over $900 million in losses since 2022, the company filed for Chapter 7 bankruptcy, ceasing all operations immediately. Despite initial promises and prototypes, Canoo struggled to secure necessary funding from both domestic and international investors. The company’s financial situation deteriorated rapidly, leaving it with less than $50,000 in assets and liabilities ranging from $10 million to $50 million. This downfall follows similar fates experienced by other EV startups like Lordstown Motors and Fisker.
From Promising Beginnings to Financial Ruin
In the heart of innovation, Canoo was founded in 2017 under the name Evelozcity and rebranded in 2019. The company unveiled its "Lifestyle Vehicle" prototype with high hopes. However, as time progressed, Canoo faced insurmountable challenges. By 2022, the company had generated no revenue, and by 2023, it managed only about $900,000, primarily from sales to Oklahoma. During this period, Canoo accumulated substantial losses—$488 million in 2022, $303 million in 2023, and another $118 million in the first half of 2024.
Financial difficulties were evident long before the bankruptcy filing. Weeks prior, Canoo furloughed a significant portion of its workforce and shut down operations at its Oklahoma facility, which reportedly never produced a single vehicle. Despite promising to create 2,000 jobs in the state, Canoo fell short of these commitments. Efforts to secure financial support from the U.S. Department of Energy and foreign investors proved futile, leading to the inevitable decision to file for insolvency.
As Canoo heads toward liquidation, a court-appointed trustee will oversee the process. Tony Aquila, Canoo’s Chairman and CEO, expressed gratitude to the employees for their dedication but acknowledged the disappointment in the outcome. Customers who placed deposits for future purchases are now uncertain about their refunds, while the fate of Oklahoma’s $1 million investment remains unclear.
The collapse of Canoo serves as a stark reminder of the challenges faced by EV startups in a highly competitive market. It underscores the importance of sustainable financial planning and the critical need for robust investor support. For readers and industry observers, Canoo’s story highlights the risks and uncertainties inherent in emerging technologies and innovative ventures. It also emphasizes the necessity for thorough due diligence and strategic planning to ensure long-term viability.