(Washington, D.C. – September 27, 2022) Automakers and battery manufacturers worldwide will spend more than $626 billion through 2030 to develop new electric cars, passenger trucks, freight trucks and buses, according to the latest report by ERM for the Environmental Defense Fund. That’s an increase of about 20% -- more than $110 billion – from projections in the last edition of the report six months ago.
“This report shows that we are moving forward rapidly toward the zero-emitting vehicles that will protect people’s health and wallets, safeguard our climate, and create economic growth and jobs,” said Peter Zalzal, EDF Associate Vice President for Clean Air Strategies. “The findings in this report also underscore the enormous opportunity and urgency for EPA to move forward with protective and equitable standards for light, medium and heavy-duty vehicles that put our nation on a pathway toward eliminating harmful pollution from these cars and trucks.”
The September 2022 Electric Vehicle Market Update is the seventh in a series that tracks the current status and projected growth of the U.S. electric vehicle industry over the next five to ten years. The original report was released in May of 2019. While previous editions of the report focused primarily on light-duty electric vehicles (passenger cars and trucks, this version also provides an in-depth discussion of medium and heavy-duty electric vehicles (such as freight trucks, semis, buses, garbage trucks and delivery vehicles).
The transportation sector is the largest source of climate pollution in the U.S. and is a main source of other pollutants that cause smog and damage human health. This report comes at a time when EPA is considering future “Tier 4” standards for passenger cars and trucks for model years 2027 as well as stronger standards for model year 2027 to 2029 medium and heavy-duty vehicles. The report’s findings underscore the importance of EPA moving forward swiftly with protective standards in order to slash climate and air pollution, improve the U.S. economy by creating new jobs, strengthen national security by reducing dependence on imported oil, and help families save money on fuel.
The latest edition of the report finds momentum for electric vehicle development and production is continuing to grow at dizzying speeds both in the U.S. and globally. In the U.S. that growth will be turbocharged by several important federal and state actions, including passage of the Inflation Reduction Act and California’s approval of its Advanced Clean Cars II program. The Inflation Reduction Act, which was signed into law by President Biden in August, offers consumers up to $7,500 in tax credits for the purchase of a new clean car, up to $4,000 for a used clean car, and up to $40,000 for a new commercial vehicle, as well as billions in other grants and tax incentives to spur zero-emission vehicle manufacturing. California’s Advanced Clean Cars II standards require that all new passenger cars and trucks sold in the state will be zero-emitting by 2035 (four other states – Massachusetts, Oregon, Vermont, and Washington – have already announced plans to adopt those standards within the year).
Major automakers are also embracing electrification as evidenced by the increased number and variety of electric models offered, as well as commitments to sales targets and manufacturing investments.
The newest report also finds significant growth in the electric medium and heavy-duty market:
You can read the full September 2022 Electric Vehicle Market Update here. Read other recent EDF reports: Clean Cars, Clean Air, Consumer Savings here and Clean Trucks, Clean Air, American jobs.
One of the world’s leading international nonprofit organizations, Environmental Defense Fund (edf.org) creates transformational solutions to the most serious environmental problems. To do so, EDF links science, economics, law, and innovative private-sector partnerships. With more than 3 million members and offices in the United States, China, Mexico, Indonesia and the European Union, EDF’s scientists, economists, attorneys and policy experts are working in 28 countries to turn our solutions into action. Connect with us on Twitter @EnvDefenseFund
Copyright © 2022 Environmental Defense Fund. All Rights Reserved. Privacy statement
Environmental Defense Fund is a nonprofit, tax-exempt charitable organization under Section 501(c)(3) of the Internal Revenue Code. Donations are tax-deductible as allowed by law. Tax identification number 11-6107128.
EDF operates with the highest standards of ethics and open, honest communication. Read our whistleblower policy or report a concern through our confidential, third-party compliance site.