US Auto Lobby Group Warns EPA Of China's Rising Threat In Race For EV Supremacy

An automaker trade association president called for the Environmental Protection Agency to reassess its electric vehicle targets, highlighting competition from China.

What Happened: John Bozzella, president and CEO at Alliance For Automotive Innovation, expressed concerns in a blog post that if U.S. regulators and policymakers push EV mandates too quickly in the coming years, China will gain a stronger foothold in America’s EV battery supply chain and automotive market.

Bozzella pointed out that while American-built vehicles are being exported to China, China-manufactured vehicles are also entering the U.S., indicating a growing two-way trading relationship. 

He highlighted that Warren Buffett-backed BYD Co BYDDY BYDDF with its sales of 1.9 million EVs last year, is larger than Tesla Inc TSLA.

See Also: Best Electric Vehicle Stocks

Unattainable Targets? According to Bozzella, the EPA’s proposal to have 37% of new light-duty cars as battery electric vehicles by 2027 and over 60% by 2030 may not be feasible, given the current market and supply chain conditions. He emphasized the lack of sufficient charging infrastructure, grid capacity, and supply of battery critical minerals and components. 

This reliance on imports from China and Chinese-backed mining companies in Chile, The Democratic Republic of the Congo, and Indonesia poses a challenge, he said.

Bozzella stated, “Before long, Chinese automakers will accelerate their entrance into the American market with low-priced EVs that meet the aggressive (and arbitrary) EPA requirements for model years 2027-2032.”

However, Bozzella also acknowledged the risk of competition from China even if the U.S. moves slowly on electrification. He called for finding the right balance and establishing fair rules.

Why It Matters: Alliance For Automotive Innovation represents several major automakers, including Volkswagen, Toyota, Stellantis, Porsche, Nissan, Mercedes-Benz, Ford, and General Motors.

Last month, Ford Motor Co F CEO Jim Farley identified Chinese automakers as the primary competition, surpassing other U.S. automakers. Farley named BYD, Geely, Great Wall Motor Co Ltd, Changan, and SAIC as key players in the EV market.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read More: China’s Xpeng Expects Flying Cars To Take Off In 5-10 Years