With billions of dollars in federal funding continuously rolling out before the end of the current administration, some are still wondering how January’s charge of the guard will affect the electric vehicle (EV) market.
This year’s light-duty electric vehicle sales are on track to reach the historic sales of EVs in 2023, a point celebrated this past January by U.S. Energy Secretary Jennifer M. Granholm.
“These developments are part of an inevitable shift toward a thriving electric transportation sector – a shift that American automakers and battery manufacturers are already carrying forward,” said Granholm in a statement.
More than 1.4 million plug-in electric vehicles were sold in 2023, with battery-electric vehicles accounting for about 80% of the total. As of October, close to 1.3 million PEVs have sold in the U.S., mirroring the trends from last year, but with a significant decrease in year-over-year sales compared to the 50% jump we saw between 2022 and 2023.
Many are aware of President-Elect Donald Trump’s vocal opinions on the EV market, which has some OEMs nervous. A recent NY Times article reported that while most OEMs are critical of the emission rules put in place by President Biden, they are hoping the incoming administration does not gut the rules the EPA has put in place, which assessed that EVs would account for 67% of new light-duty vehicle sales and 46% of new medium-duty vehicle sales by 2032. This would more than make up for the investments made by the Big Three and others in EV manufacturing.
According to insight from the upcoming State of Sustainable Fleets Market Brief 2025 and S&P Global Mobility, Class 2-8 BEV sales have reached 19,505 sales so far in 2024, compared to 2023’s 26,323 total for the year. The commercial market is still taking baby steps towards electrification, with necessary federal funding assisting more and more cases since the passage of the Bipartisan Infrastructure Law (BIL).
This funding has also made its way to the parts powering this move to zero-emission transportation — batteries. In September, the Biden Administration announced that more than $3 billion had been awarded for 25 different battery manufacturing projects across 14 states. A previous round of funding included $1.82 billion to 14 projects. But even with OEMs’ push for EVs and continued industry investment, some are feeling cautious about what the next administration might do.
On December 2, General Motors announced an agreement with joint venture partner LG Energy Solution to sell its stake in a nearly complete EV battery plant in Michigan. While the details of the final sale have not been released, the Associated Press reported that GM has already invested approximately $1 billion in the plant’s construction. GM, along with Ford and others, has eased plans to produce more EVs, due in part to the slower growth of EV sales in 2024 compared to the previous year. These plans may see more drastic changes in 2025 and beyond, depending on the Trump Administration’s stance on EVs.
For now, the industry is on standby, waiting to see whether Trump’s return to the White House will hinder or help the path towards zero emissions.
