The US electric car market will grow 20 percent faster than predicted

According to the latest study from BloombergNEF, the US is the world’s greatest polluter when it comes to transport emissions - 1.64 gigatonnes of carbon dioxide is expected to be produced by vehicles in North America this year alone.

Until now, North America was stuck in the slow lane of electric car adoption. While China took over the electric car sales with 56 percent of global market share, Europe came second with 28 percent in the first half of this year. Germany experienced a jump from 3 percent of EV sales market share to 26 percent in just 3 years, UK went from 2.2 percent to 24 percent in the same time and France managed to go from 2.8 percent of EV market share to 21 percent.

Under the old incentives policy in the US, only 31 percent of all electric cars sold qualified for the $7,500 tax credits, the IRA act bumps that number to 64 percent. Add to it the revised fuel economy regulations and the electric car market starts looking at seriously positive gains.

The IRA brought more incentive for commercial vehicle buyers, there are huge incentives for companies looking to set up local battery manufacturing and automakers from around the world are being left with no choice but to bring production to the US in order for their vehicles to remain competitive although they are about to get a little respite from the looming deadlines.

Add to it the National Electric Vehicle Infrastructure program that comes with $5 billion designated to be spent on the national EV charging network and the outlook is getting really positive really fast. The plans for 15 battery factories have been already submitted with $40 billion of investments committed to these projects. All 50 states have already approved plans to build the charging networks - things do move fast when there’s money on the table.

BloombergNEF predicts that the US EV market will grow faster by at least 20 percent by 2030 and it can still be a very conservative figure. California is far ahead already and nearly 30 percent of all EV charges and 18 percent of all electric cars in the US are in the Golden State. Rest of the US will catch up, the race is on.

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