Can Earth afford for car companies to go electric?

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The economic principle I’m exploring is “Because of scarcity, people choose. All choices have an opportunity cost”

My research question to help me study the economic principle is “Can Earth afford for car companies to go electric?”

The article published in Car and Driver titled “Mineral Rites” demonstrates this economic principle by showing that the minerals needed for electric cars are abundant but difficult to produce, many times when mining these minerals human rights are violated, and 90% of production goes through China. 

First, minerals needed for electric cars are abundant in the earth but difficult to produce. One specific mineral, neodymium, is essential for the modern permanent-magnet motor. This is the motor that is currently being used in cars like the Tesla Model 3 and Nissan Leaf. Necessary minerals must be extracted from other minerals via extremely labor-intensive processes. I believe this will cause problems like we see in India’s cargo ship business. These problems could range from health problems to unfair working conditions or to pollution.

Second, 90% of the production for those minerals runs through China. China has imposed strong regulations on companies to make sure they are making product in a safe way. However, many companies don't listen. There are countless companies who take advantage of the system and avoid the law. With this many companies running through China, I believe they will have too much power over the market. China could easily impose large taxes on minerals coming in and out of the country and therefore make our precious cars that more expensive.

Third, many minerals are found in countries in Africa, for example, the Democratic Republic of the Congo. Countries like the Congo have mining businesses that are crippled by human rights violations. One report estimated that 40,000 children are working in mines in the Congo and that they are currently being exposed to toxic materials that may cause health problems.

In my next blog post I will research the question: How beneficial are electric cars?