US On Track For 50% EV Sales By 2030 Despite Recent Slowdown, Says Energy Secretary: What's Behind Her Optimism?

Despite the recent slowdown in electric vehicle (EV) sales, Energy Secretary Jennifer Granholm is confident that the United States is still on course to achieve its ambitious EV targets.

What Happened: Granholm, while speaking at an EV battery plant in Moses Lake, Wash., on Thursday, stated that the U.S. is still on track to hit the target of 50% of all new vehicle sales being electric by 2030, reported Yahoo Finance.

Despite the recent deceleration in EV sales, Granholm projected a similar rate of EV uptake in 2024 as in the previous year, when EVs accounted for 7.6% of the US auto market.

She attributed the growth to the introduction of more affordable EV models by domestic manufacturers. Granholm mentioned that a record 1.2 million EVs were sold in 2023, marking a significant increase from previous years.

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However, the growth rate has started to slow, prompting concerns from industry leaders. Elon Musk, CEO of Tesla, warned of notably slower growth in 2024, leading to a plunge in Tesla’s stock. Ford CEO Jim Farley attributed the shift to smaller EVs to a “seismic change” in the market.

Granholm acknowledged that the higher cost of EVs and the lack of reliable charging infrastructure remain significant barriers to widespread adoption. She highlighted the Biden administration’s investments in clean energy infrastructure and emphasized the need for federal-private sector collaboration to drive the clean energy revolution.

Why It Matters: The recent slowdown in EV sales comes after a period of rapid growth. In 2023, the US saw a significant increase in new EV sales. A poll conducted on Twitter in July 2023 indicated that the U.S. was among the countries experiencing a surge in new EV sales. The poll asked what the future might hold for this burgeoning sector. However, the recent slowdown in EV sales has raised concerns about the achievability of the US’s ambitious EV targets.

In January, automotive consultant Cox Automotive said it sees a surge of over 70 electric vehicle models entering the US market within the next two years, setting the stage for an impending EV “stampede.” This year has been projected to be a pivotal one for the EV market, with an even more substantial influx of new electric vehicles. Similarly, in 2025, the EV market was expected to witness the addition of new vehicles, albeit at a slightly slower rate compared to 2024.

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