The Electric Vehicle Future: Major Climate Opportunity Faces Three Critical Challenges

Amid renewed national ambitions to tackle climate change, electric vehicles (EVs) have emerged as a promising way to reduce emissions in the transportation sector, which accounts for nearly a third of greenhouse gas emissions. This approach has garnered support even from private industry, as evidenced by the flurry of car manufacturers who recently committed to all-EV fleets in the coming decades. These include GM, Volvo, and Jaguar, with others such as Ford planning to expand their EV offerings.

But widespread EV adoption in the United States faces three critical challenges: a limited battery supply chain, inadequate charging infrastructure, and already strained power grids. Addressing these issues will require both political will and funding at the federal level—neither of which is currently guaranteed.

  • Battery Supply Chain: Most electric vehicles run on lithium batteries. But the US lacks a strong battery supply chain, relying largely on China’s extraction and manufacturing capabilities. As a result, Senator Joe Manchin (D-WV)—a key vote in the narrowly divided Senate—has expressed “grave concerns about our country going to the EV” and becoming even more dependent on foreign supply chains for critical infrastructure needs. The Biden administration recently released a report intended to assess key supply chain vulnerabilities, including with respect to advanced batteries. The report’s recommendations include expanding domestic mineral extraction, increasing recycling efforts, and supporting manufacturing—all of which will likely require new federal funding.
  • Charging Infrastructure: Another critical challenge to EV adoption is the inadequacy of existing charging infrastructure, both in terms of amount and technology. There are currently around 42,500 public EV charging stations in the US, compared to about 115,000 gas stations. Moreover, even “DC fast chargers,” which are more expensive than other kinds, can take around a half hour to charge a battery to 80%. While EV technology has advanced, allowing vehicles to accept electricity at a faster rate, charging stations have not kept pace. Until EV charging becomes as quick as filling up a tank of gas, experts fear the public will be hesitant to adopt the less convenient option.
  • Strained Power Grids: Related to the need for improved charging infrastructure is the need for greater electric-grid capacity to accommodate a surge in EV demand. The nation’s power grids are already strained, and blackouts like those recently seen in Texas and California will only become more common in the face of climate change. But the nation’s electric generation capacity will need to double if two-thirds of all US cars are EVs by 2050. Reaching this capacity will require significant investments in grid updates.

President Biden hopes to address these issues through his infrastructure plan, which seeks $174 billion for EVs, in part to support 500,000 new EV charging stations by 2030. But the proposal has faced hurdles in the Senate, with Republicans and Democrats expressing competing concerns about funding sources and priorities. Meanwhile, some states are attempting to fill part of the gap in the EV transition by passing pro-EV policies. Ultimately, however, federal dollars will almost certainly be necessary to achieve EV adoption at a meaningful scale.

One thought on “The Electric Vehicle Future: Major Climate Opportunity Faces Three Critical Challenges

  1. Federal dollars are required because we fail to include the cost of GHG in gas and diesel powered vehicles. Including this cost would go a long way to incentivizing EVs in the most economic way. Federal funding is not a free panacea.

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