How Electric Cars Stack Up Against Gas- And Hydrogen-Powered Cars

The new vehicle market in the U.S. currently features a balanced selection of internal combustion engine vehicles and fully electric vehicles, with some hybrids, plug-in hybrids, and hydrogen fuel-cell electric vehicles scattered in-between. ICEs continue to dominate the total sales charts, but EVs and hybrids are gaining traction. In 2024, U.S. consumers purchased 1.3 million EVs, 7.3 percent, a reflecting increase from 2023. However, this was only thanks to a handful of manufacturers, as most brands struggled with EV demand declines. Hybrids have enjoyed a notable rise, with their market share reaching a record 10.6 percent in the third quarter of 2024. This surge in hybrid popularity is attributed to consumers seeking improved fuel efficiency without fully transitioning to EVs. Conversely, EV demand has experienced a slight decline, with market share holding steady at 8.7 percent in the fourth quarter of 2024, unchanged from the previous quarter.

Factors contributing to this leveled performance include concerns over charging infrastructure, battery longevity, and recent legislative proposals. The U.S. Senate Republicans have also introduced bills aiming to eliminate the $7,500 tax credit for new EVs and impose a $1,000 fee on EV purchases to fund road repairs, potentially impacting future EV adoption. Despite these challenges, automakers are expanding their EV lineups, and advancements in battery technology are addressing consumer apprehensions. The market is in flux, with hybrids currently experiencing increased demand, while EVs face hurdles that may affect their growth trajectory in the near term.

A 2025 Honda CR-V e:PHEV being charged

What Makes Electric Cars Different From FCEVs And ICEs

A blue 2022 Toyota RAV4 Hybrid small hybrid SUV is parked.

EVs differ mechanically from FCEVs and ICEs, as they feature much simpler drivetrain designs that rely on electric motors and a battery pack, resulting in a lack of lubricated moving components. EVs use one or more electric motors powered by a high-voltage lithium-ion battery pack, which supplies direct current electricity that an inverter converts into alternating current to drive the motor. This instantly generates torque to the wheels, resultantly eliminating the need for a multispeed transmission that you would typically find in an ICE or hybrid. Furthermore, EVs lack components like an engine, exhaust system, fuel tank, or cooling system for combustion, making them mechanically simpler and requiring less maintenance.

FCEVs also feature electric motors to move, but the system sources electricity from an onboard hydrogen fuel cell stack stored in high-pressure tanks. The hydrogen undergoes an electrochemical reaction with oxygen in the fuel cell, which produces electricity and water as a byproduct. Unlike EVs, FCEVs source energy from a fuel cell, hydrogen storage system, and a substantially smaller lithium-ion buffer battery to manage power delivery. The fuel cell system includes a complex balance-of-plant setup, including air compressors, humidifiers, and cooling circuits to maintain optimal performance, but it does result in added components that require maintenance.

ICEs feature an internal combustion engine that burns gasoline or diesel, converting chemical energy into mechanical power through controlled explosions. A multi-speed transmission delivers power from the engine to the wheels, requiring a clutch or torque converter, connected to a manual or automatic gear-shifting system. ICEs require extensive support systems, including fuel injection, cooling, lubrication, exhaust treatment, and emissions control. They contain thousands of moving parts, leading to higher wear and maintenance. Unlike EVs and FCEVs, ICE vehicles lose significant energy as heat and rely on mechanical linkages rather than direct electrical propulsion, making them less efficient and more complex to maintain over time.

They sure have been taking their sweet time. There aren’t a lot of available models, and there’s not a lot of hydrogen fueling infrastructure. Is that a chicken-and-egg sort of problem, or are other barriers too great to allow hydrogen to make it to primetime? Or are the naysayers wrong, and we’re on the verge of a hydrogen revolution?

EVs Are Much Cheaper To Run Than FCEVs

Tesla

Electric vehicles cost significantly less to run than fuel cell electric vehicles in the U.S. because electricity prices are much lower than hydrogen fuel costs. The national average electricity rate hovers around 16 cents per kWh, allowing EV drivers to charge at home for as little as $5 to $10 per full charge, depending on battery size. You'll be spending more when you plug it in at a public charger, but it's still substantially less than what you'll find yourself spending on hydrogen.

At most, a fully charged electric battery translates to just over $80 for a full tank in an FCEV. Hydrogen infrastructure is also scarce, forcing drivers to rely on limited and often higher-priced stations specifically in California. All manufacturers offer a $15,000 or three-year complementary hydrogen fuel stipend to all buyers or leasers, alleviating the running costs, but only during this limited period. To make matters worse, some of these stations are being discontinued due to the decline in demand for FCEVs in the region.

Toyota bZ4X Vs Toyota Mirai EPA Consumption Estimates

Furthermore, EVs benefit from lower maintenance costs since they have fewer moving parts and do not require oil changes, complex transmissions, or fuel cell stack replacements. FCEVs also require regular servicing for hydrogen storage and fuel cell components, which can be costly. Federal and state tax incentives favor EVs, with up to $7,500 in federal credits and additional state-level perks, whereas FCEVs receive fewer incentives and remain limited to California. The total cost of ownership favors EVs because battery costs continue to decline, home charging offsets fuel expenses, and fewer maintenance issues reduce long-term costs.

Hydrogen production remains expensive and inefficient due to reliance on fossil fuels or costly green hydrogen methods, while electricity comes from a mix of increasingly renewable sources, further reducing EV running costs. Many analysts predict that the cost of hydrogen will increase exponentially by 2026, further hurting the prospects of hydrogen as a viable fuel source in the U.S. This has led to manufacturers investing much more resources into electrification, which has resulted in better charging networks, competitive pricing, and technological advancements that improve efficiency.

With rising hydrogen costs, slow infrastructure growth, and fewer government incentives, FCEVs remain expensive to run, while EVs continue to offer the most cost-effective and widely supported option for American drivers looking to lower their monthly private transport costs.

2025 Porsche Macan GTS in red driving on country road with mountains in background

EVs Benefit From Lower Long-Term Costs Than ICEs

Kia

It's common knowledge that electric vehicles cost much less to own long-term than internal combustion engine vehicles in the U.S. because electricity is cheaper than gasoline, maintenance is minimal, and tax incentives lower upfront costs. This is even if you include the cost to have the battery modules replaced after about 10 years of regular use, but it excludes the cost of depreciation that you have to take on. Where day-to-day running costs are concerned, gasoline prices fluctuate and often exceed $3.50 per gallon, pushing monthly fuel costs well beyond what EV drivers pay. Public fast charging is pricier but still competes favorably with refueling an ICE vehicle, especially as home solar adoption increases.

Again, we emphasize that EVs require less maintenance since they lack oil, spark plugs, belts, and complex transmissions. Regenerative braking also reduces brake wear. Modern lithium-ion battery packs last over 200,000 miles in many modern EVs, eliminating the need for expensive engine and transmission repairs common in ICE vehicles. Federal tax credits of up to $7,500 and state incentives further reduce initial purchase prices, making EVs increasingly affordable. Fuel savings alone will offset any price difference, with studies showing EV owners can save thousands over a decade.

Automakers continue improving battery efficiency, increasing range, and expanding charging networks, making EV ownership easier and more cost-effective. Insurance costs remain fairly equal, but some states offer lower registration fees and additional perks for EV drivers. Electricity prices will stabilize or decline, depending on whether more renewable energy sources will become more present in the U.S. Gasoline remains subject to geopolitical fluctuations and refining costs. ICE vehicles also face rising maintenance expenses due to increasingly complex emission control systems and potential bans or penalties in the future. With lower fuel and maintenance costs, government incentives, and advancing technology,

white 2025 Hyundai IONIQ 5 XRT

 

EVs Will Outlast ICEs And FCEVs

Lucid

If the current automotive trends stay on track and solid-state battery technology hits the mainstream market, there's a very strong likelihood that EVs will eventually dominate the new vehicle market. With time, experts anticipate that battery costs will decline, global charging infrastructure will expand, and regulatory pressure will motivate increasing consumer demand.

During this time, ICE and FCEV technologies face rising costs and limited support, hurting their chances at potential mainstream success. Companies like Toyota, Honda, and Hyundai continue investing in fuel cell vehicles, believing hydrogen has long-term potential, but high fuel costs, limited refueling stations, and inefficient hydrogen production make widespread adoption unlikely.

The State Of Hydrogen Fuel Stations In The U.S.

• As of July 2024, the United States had 54 publicly accessible hydrogen refueling stations, with 53 located in California and one in Hawaii.
• California's hydrogen infrastructure has faced challenges, with the number of stations decreasing from 66 in 2023 to 62 in 2024 due to closures by Shell.
• The California Air Resources Board projects the state's hydrogen station network will reach 129 stations by 2030, falling short of the original goal of 200 stations by 2025.
• Despite setbacks in light-duty vehicle infrastructure, hydrogen fuel cells are gaining traction in heavy-duty transportation sectors, including trucks and boats.
• The U.S. government has shown support for hydrogen development, approving tax credits and allocating $7 billion for regional production hubs across the country.
• Projections suggest the U.S. could have up to 4,300 large hydrogen fueling stations by 2030, a significant increase from 2019 figures.

General Motors, Ford, Volkswagen, and Mercedes-Benz have committed billions to EV development, scaling up battery production and building dedicated EV platforms. In recent months, some of these brands have admitted that their goals were too ambitious and announced that they would be shifting focus to plug-in hybrid technology. Full electrification is still on the cars, but it will just occur at a later date. Legacy ICE manufacturers like Stellantis and BMW still produce gas-powered vehicles and explore synthetic fuels, but tightening emissions regulations and government mandates in the U.S., Europe, and China make long-term ICE production unsustainable.

EV battery prices have dropped nearly 90 percent since 2010 and will continue declining, making EVs more affordable than ICEs within a decade. With manufacturing costs dropping, consumer adoption rising, and regulatory pressure increasing, it's almost certain that EVs will outlast ICEs and FCEVs, becoming the dominant force in the new vehicle market while other technologies fade into specialized or low-volume applications.