US sets 50% target on electric vehicles by 2030

The United States has set a target to make half of all new passenger cars and light trucks sold in 2030 zero-emissions vehicles. The category includes battery electric, plug-in hybrid electric, or fuel cell electrics vehicles.

“America must lead the world on clean and efficient cars and trucks,” U.S. President Joe Biden announced on August 5. “My administration will prioritize setting clear standards, expanding key infrastructure, spurring critical innovation, and investing in the American autoworker.”

In a joint statement by Ford, General Motors and Stellantis, the automakers announced “their shared aspiration to achieve sales of 40-50% of annual U.S. volumes of electric vehicles (battery electric, fuel cell and plug-in hybrid vehicles) by 2030 in order to move the nation closer to a zero-emissions future consistent with Paris climate goals.” That percentage range is up from about 2% this year.

The White House briefing noted that the U.S. market share of electric vehicles “is only one-third that of the Chinese electric vehicle market,” and outlined a number of investments including: “installing the first-ever national network” of electric vehicle charging stations; consumer incentives; “financing the retooling and expansion of the full domestic manufacturing supply chain;” and “innovating the next generation of clean technologies to maintain our competitive edge.”

Since 2010, the cost of battery packs has fallen by 85%, the White House briefing stated, “paving the way to sticker price parity with gasoline-powered vehicles.” It also noted that the range of EVs has “increased dramatically as charging times shortened.”

“As I’ve said before, we’re in competition with China and many other nations for the 21^st century,” Biden declared. “To win, we’re going to have to make sure the future will be made in America.”

“Right now, China is leading the race, and is one of the largest and fastest-growing electric vehicle markets in the world. And a key part of the electric vehicle – to state the obvious – is the battery. And right now, 80% of the manufacturing capacity for these batteries is done in China.”

In addition to his executive order mandating the EV target, Biden also announced new steps Washington will take, which will include “the campaign commitment to reverse the previous administration’s short-sighted rollback of emissions and efficiency standards — I’m doing so and—with the support of the auto industry.”

According to the White House briefing, the Environmental Protection Agency (EPA) and U.S. Department of Transportation, “are advancing smart fuel efficiency and emissions standards that would deliver around US$140 billion in net benefits over the life of the program, save about 200 billion gallons of gasoline, and reduce around two billion metric tons of carbon pollution.”