Electric & Hydrogen Cars

According to BloombergNEF (2021), the current average price of a medium-sized electric vehicle is about 45 million won, and a gasoline vehicle costs about 25 million won, about half of its price. However, by 2026, both models are expected to be about 26 million won. Furthermore, it is expected that by 2030, the production cost of batteries, which are the main power of electric vehicles, would be significantly lower, and thus, electric vehicles would be cheaper than gasoline vehicles.

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Consumption of electric vehicles seems to have increased due to stricter carbon emission standards, increased purchase subsidies, and decreased battery costs. Although global car sales fell 16% due to the outbreak of COVID-19, sales of electric vehicles surged 41% compared to last year. The increased choice of automakers by releasing various electric vehicles seems to have helped demand for electric vehicles. In addition, various countries have increased purchase incentives to encourage the sale of electric vehicles, and implemented various policies such as giving subsidies or lowering fuel efficiency standards. Due to these policies, not only electric vehicles but also various forms of electric transportation, such as electric buses and electric bicycles are expected to be used commonly. In addition, as various models emerge, price competition is expected to intensify as options increase. Electric energy is still widely used in people's daily lives, personally or nationally. It is easy to access electricity because there are various sources of electric energy. However, thinking about the environment, there are many flaws of using electric energy. When generating electricity, it releases carbon dioxide and other greenhouse gases that absorb and emit radiation into Earth's atmosphere. Also, when it comes to pollution and acid rain, the natural gases releasing carbon dioxide and nitrogen oxide lead to air pollution and smog (Wandrei, 2017).

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Fuel Cell Car is an ideal car because it runs by combining hydrogen and oxygen for making electrical energy and only water is left out as a waste. However, due to the far less infrastructure prepared for the use of hydrogen cars, it is mostly available for leasing in the United States only in Southern California. Although the fuel cell car is developing, it is still at an early stage in the market so the price is not cheap for the leasing. On the other hand, the price of electricity produced from fossil fuels, the cost of solar and hydrogen gradually decreases while the cost of refining and extracting oil keeps increasing. Hence, the market price will be reversed in the near future.