[Passenger Cars , Electric Vehicles , Automobile Manufacturers ]
According to a report from Bloomberg New Energy Finance, by 2030, more than half of all passenger cars sold in the U.S. will be electric vehicles, thanks in part to consumers included in the $374 billion in new climate spending enacted by President Biden incentives.
Those incentives, which include a tax credit of up to $7,500 for the purchase of new electric vehicles, could speed up EVs, Bloomberg New Energy Finance analysts found in the report.
According to previous estimates, electric vehicle sales will account for 43% of the U.S. market by 2030. That forecast was revised up to 52% with climate spending measures in place.
The U.S. is on track to achieve a key goal set by Biden last year to have half of all cars sold in the U.S. be battery-electric, plug-in hybrid or fuel-cell powered by the end of 2030, according to new forecasts from Bloomberg New Energy Finance.
Electric vehicles will account for less than 5% of sales in the U.S. in 2021, lower than the global share of nearly 9%, and far below the penetration rate in countries such as China, where plug-in vehicles currently account for about 24% of new vehicle sales.
Last year, Norway became the first country to sell more electric cars than internal combustion engines. The U.S. will surpass the global average in 2026, according to revised forecasts from Bloomberg New Energy Finance.
The three automakers with the most domestic battery production in the short term - Tesla, General Motors and Ford - will benefit the most from the new law, the report said. The requirements "take time to adapt," analysts said in the new report, especially as automakers grapple with key mineral and battery rules. But those challenges are expected to diminish over time, a shift that could also bring more EVs into affordable price ranges.
Corey Cantor, an electric vehicle analyst at Bloomberg New Energy Finance, said: [For the next year or so, there shouldn`t be much of a difference in sales. Later in the decade, we expect not only electric vehicle tax credits, but battery production as well. The tax credit will drive a dramatic drop in the cost of electric vehicles."