Electric Vehicles (US Market)

Main Article: Electric Vehicles (Global Market)

History

2023

Slow growth in demand for electric vehicles

US poaches electric battery developers from Europe in bid to catch up with China

At the end of December 2023, it became known that against the background of the rapid development of the electric vehicle market, companies from the United States are actively luring traction battery developers from Europe. As a result, European enterprises face difficulties in creating industries independent of China, the world's leading supplier of graphite and other raw materials needed to make batteries.

According to the Financial Times, Chris Burns, a former engineer Tesla who heads Novonix, an Australian electric battery components firm, spoke about the situation. According to him American , the federal Inflation inflations Reduction Act contributes to the transition of developers from Europe to the United States. In accordance with this document, the US authorities intend to allocate up to $369 billion to combat inflation and develop the electric vehicle industry, including battery production. Such significant financial support for their companies cannot be provided either or. European Union Great Britain

Against the backdrop of the rapid development of the electric vehicle market, US companies are actively luring traction battery developers from Europe

We have always considered expanding the business to Europe, but financing [in this region] is becoming the biggest problem. Now our goal is to turn over the Riverside facility [where the company intends to produce graphite] and start building the next site in North America. These challenges will ensure our employment for the rest of the decade [until 2030], Burns says.

As of the end of 2023, Chinese suppliers control 75% of the global market for graphite, which is used as a component of the anode of electric batteries. At the same time, Chinese manufacturers are increasingly focusing on Europe and nearby regions to expand their global presence, as the US authorities impose bans on them at the legislative level.^[1]

Cashback approval of $7,500 for the purchase of an electric car

On October 6, 2023, the Treasury Department and the U.S. Internal Revenue Service approved new tax breaks for buyers of electric vehicles. "State Cashback" will begin to operate directly in dealerships from January 1, 2024. It is assumed that the initiative will help increase sales of vehicles equipped with an electric power plant.

According to Canalys estimates, in the first half of 2023, approximately 6.2 million electrified cars were sold worldwide (including hybrids with the ability to charge the battery pack from the electric network). This is 49% more compared to the same period in 2022. About 55% of total sales fell on China, another 24% - on Europe. The United States is significantly behind these regions with a share of 13%. According to the research company Kelley Blue Book, by the middle of the summer of 2023, the average price of an electric car in the American market exceeded $53 thousand, which is about $23 thousand more compared to comparable in class models equipped with an internal combustion engine.

"State cashback" will begin to operate directly in dealerships from January 1, 2024

The government's new support measures are designed to boost sales of electric vehicles. In particular, when buying a new car with an electric motor in a dealership registered in a special IRS Energy Credits Online database, the client will be able to immediately receive a benefit of $7,500. If a used vehicle is purchased, the cashback will be $4,000.

It is assumed that the initiative will be beneficial not only to consumers, but also to dealerships that will have an additional opportunity to attract buyers and develop their business. To qualify for a discount at points of sale, consumers must meet certain income restrictions: no more than $300 thousand per year for married couples and no more than $150 thousand per year for unmarried applicants.^[2]

2nd in the world in terms of electric vehicle production in the world

Purchase of 900 electric vehicles for officials

On January 4, 2023, New York authorities announced a project to purchase more than 900 electric vehicles for public services. Such cars will replace cars with traditional internal combustion engines. Read more here.

2022

43 public ESVs per 1,000 electric vehicles

Data for 2022

Sales of electric vehicles rose 54.5%. Leaders

At the end of 2022, sales of electrified cars in the United States increased by more than one and a half times compared to the previous year - by 54.5%. Such data are provided in a study by Counterpoint Technology Market Research, the results of which were released on April 4, 2023.

The report takes into account shipments of fully electric battery-powered passenger cars (BEV) and hybrid models with the ability to recharge the battery pack from the mains. It is said that the demand for BEV cars in the American market in 2022 jumped by almost 70% on an annualized basis, and their share exceeded 80% of the total mass of electrified vehicles sold.

The ranking of the leading players in the US electric vehicle market is topped by Tesla with a 50.58% share in 2022. Hyundai/KIA is in second position with 7.81%, and Ford closes the top three with 7.56%. The top five also included Stellantis and the Volkswagen group with a score of 7.08% and 5.24%.

The 10 most popular electrified car models accounted for 69% of the total sales of such passenger vehicles in the United States in 2022. The rating in decreasing order included Tesla Model Y, Tesla Model 3, Jeep Wrangler, Ford Mustang Mach-E, Tesla Model S, Chevrolet Bolt EUV, Hyundai Ioniq 5, Tesla Model X, Toyota RAV4 Plug-in Hybrid and Kia EV6.

Although total sales of passenger cars in the United States decreased in 2022, deliveries of electrified models increased to 7% in total shipments. Tesla dominates the U.S. electric vehicle market, while other brands like Ford, General Motors, Stellantis, Volkswagen and Hyundai are struggling to cope with strong competitive pressures, said Abhik Mukherjee, research analyst at Counterpoint.[3]

Biden allocated $3.1 billion from the US budget for the production of batteries for electric vehicles

On May 3, 2022, the administration of US President Biden announced that the head of state had allocated about $3.1 billion from the US budget to support the domestic production of modern batteries for electric vehicles. According to supporters of the project, which is part of a bipartisan infrastructure law adopted in 2021, support for local battery initiatives will mitigate fluctuations in world oil markets, in particular, a sharp increase in gas prices, caused mainly by the start of a special operation by Russia on the territory of Ukraine.

The White House said it would also provide separate grants of $60 million for battery recycling initiatives. These grants will support efforts to "reduce our reliance on competing countries, such as China, that have an advantage in the global supply chain," according to a statement from the Department of Energy.

Biden allocated $3.1 billion for the production of batteries for electric vehicles

The announcement comes about a month after Biden said in April 2022 that his administration would use the Defense Production Act to secure American sources of critical materials like lithium, nickel, cobalt, graphite and manganese that are used in electric vehicle batteries and energy storage.

As he writes TechCrunch in early May 2022, most of the listed useful ones minerals are processed in. Asia Only China controls 80% of the global processing of raw materials, 77% of the global capacity for the production of cells and 60% of the global production of components, due to the high domestic demand for batteries. The amount of $3.1 billion will help American companies build new factories and re-equip existing enterprises to produce batteries for electric vehicles and related parts.^[4]

Notes