American roads will be dominated by electric cars by 2030. This is driven by advances in technology, changing consumer preferences and regulations.
NEW YORK, U.S., Nov. 1, 2022 /EINPresswire.com/ — U.S. automobiles are projected to be mostly electric by 2030
By 2030, American roads will be dominated by electric cars. This shift is being driven by several factors, including advances in technology, changing consumer preferences, and tighter emissions regulations. The advantages of electric cars are also numerous.
They are cheaper to operate and maintain than petrol-powered vehicles and produce no emissions. Electric cars also have the potential to reduce our dependence on foreign oil as renewable energy sources such as solar and wind can power them.
America’s path to an electric future
As electric cars become more popular in the United States, it’s important to understand the different types of electric vehicles that are available in the market.
Four main types of electric vehicles:
1. Battery Electric Vehicles (BEVs) are powered solely by battery packs that are regularly charged. BEVs typically have greater range than other EVs, with minimal operating costs.
2. Plug-in Hybrid Electric Vehicles (PHEVs) combine battery power with a gasoline or diesel engine. PHEVs can be plugged into an outlet to charge the batteries, but they can also use gasoline or diesel fuel for extra range.
3. Hybrid electric vehicles (HEVs) use a battery pack, but the battery is not the sole source of energy. HEVs typically have a smaller battery than BEVs or PHEVs, and they rely on the motor to generate electricity when the battery is depleted.
4. Fuel Cell Electric Vehicles (FCEV) run on electricity generated by a fuel cell instead of a battery. In fuel cells, electricity is generated by an electrochemical process between hydrogen and oxygen. They are more efficient than internal combustion engines when it comes to converting the chemical energy in fuel into usable electrical energy. The main benefit of FCEVs is that they emit minimal pollutants.
Bloomberg NEF forecast
According to a new NEF forecast from Bloomberg, the United States will soon meet the electric car targets set by the Biden administration last year that 50% of cars sold in the United States will be battery electric and plug-in by 2030 hybrid or fuel cell powered.
Those goals are easily achievable because of new stimulus under President Joe Biden’s $374 billion climate change bill. The incentives offer a $7,500 tax credit for EV purchases, which Bloomberg says will increase consumer acceptance of EVs.
According to the report, electric car sales will account for 52% of total sales by 2030. This is an increase from the previous forecast of 43%.
Most of this expansion will come from China and other Asian countries. Plug-in vehicles already account for nearly 24% of new car sales in China. In Norway, electric vehicles have outperformed sales of internal combustion engines.
As the global market expands, electric car sales in the United States will increase. It was below 5% in 2021, while the global rate was almost 9%. US sales will surpass the global average in 2026, not 2028, according to Bloomberg.
Tesla, General Motors and Ford Motor Company are the three US companies expected to be leaders in this market. The new tax credit will likely benefit all three companies because they are in the best position to take advantage of it. However, analysts pointed out that the adjustment of credit requirements would take time. Some manufacturers face obstacles due to critical mining restrictions limiting battery production.
China’s dominance of the electric vehicle battery market is under threat
According to Marketwatch, the Wall Street Journal noted that Panasonic is considering building a new battery factory for electric vehicles in Oklahoma. This comes after the company announced a new facility in Kansas in July that would create up to 4,000 jobs.
A Panasonic spokesman said no action was taken in response to the report. However, they stated that the company is constantly looking for opportunities to expand and invest both nationally and internationally.
Panasonic shares closed down 0.4% in overseas trading on Aug. 26, 2022. This comes despite a tough day for the S&P 500 and the Dow Jones Industrial Average after dovish comments from Federal Reserve Chair Jerome Powell.
Panasonic already has significant battery manufacturing capacity in North America and is helping Tesla expand its manufacturing facilities. The Japanese conglomerate has an annual battery production capacity of around 50 gigawatt hours. That’s enough batteries to power about 700,000 electric vehicles.
As the world’s largest battery manufacturer, Contemporary Amperex Technology Co. Ltd. (CATL) has long been a leader in supplying EV materials. With revenue of over $17 billion in the first half of 2022, up 155% year over year, CATL shows no signs of slowing down.
The world has been heavily dependent on China to provide most EV materials for many years. More electric car sales in China contributed to the country’s EV dominance. In recent months, EV adoption has surged to over 25%, about three times that of the US.
Batteries are just one component of electric cars. Other facets of the supply chain should also be considered. While most battery components are still manufactured in China, EV materials shipped in the United States are shipped to China for processing before being returned, according to former 5E Advanced Materials (FEAM) President Anthony Hall.
In California, FEAM operates a boron project. Boron has numerous uses, including agriculture. Boric acid can be used as an electrolyte in batteries. Electrolytes support the flow of electrons from the positive pole to the negative pole of the battery.
Boron is increasingly used in permanent magnets in electric motors. Once again, China processes most of the material and makes most of the magnets. MP Materials (MP) mines and ships rare earth minerals to China. MP eventually wants to make its magnets. At some point, FEAM wants to supply MP with boron, another element of magnets.
Panasonic, FEAM and MP helped bring the EV supply chain back to the United States. The changes will lead to cost savings in logistics. Materials are not transported around the globe multiple times. Time will tell if materials and batteries can be manufactured at a price competitive with China.
Even if that doesn’t happen, American automakers should feel less dependent on China for critical components.
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