U.S. carmakers will seek to boost the share of electric vehicles in their total sales from single digits now to as much as 40-50 percent by 2030, according to several media reports.
This target, however, includes not just battery electric vehicles but also plug-in hybrids and fuel cell cars.
General Motors, Stellantis, and Ford Motor Co. are all investing billions in EV production in anticipation of a shift in buyer behavior. But challenges remain, the Wall Street Journal notes in its report.
The success of the automakers’ plans depends on more government support, both on a federal and local level, as well as more subsidies and an expansion of the charging network.
Reuters’ David Shepardson recalled that the Biden administration had been pressing carmakers to commit to EV sales of at least 40 percent of the total by 2030. According to unnamed sources, the sales target will be announced later today after a meeting between President Biden and the chief executives of the Big Three.
“This industry’s going to spend $330 billion over the next five years on electrification alone,” John Bozzella, president of the Alliance for Automotive Innovation, said yesterday at an industry event, as quoted by the WSJ. “Even in Washington, D.C., that is real money.”
The $330 billion comes from calculations by consultancy Alix Partners, which said in June that the $330 billion, a 41-percent upward revision on its earlier forecast, could be spent by 2025. Separately, the Biden administration has proposed $174 billion in spending to support wider EV adoption.
Smaller carmakers are also expected to announce ambitious EV sales target separately. As for the hitting of these targets, support will indeed be crucial. Despite a recent surge in U.S. EV sales, the latest data, cited by the WSJ, shows they only accounted for some 3 percent of total car sales in both May and June.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com:
- Big Oil Unjustly Under Fire For ‘Dirty’ Hydrogen
- China’s Industrial Slowdown Could Kill The Commodity Rally
- Has The Oil Market Learned To Live With Covid?