On his first day back in office, the new US president wasted no time delivering on a promise he made last year: to dismantle what he has described as a mandate to sell electric cars.
Donald Trump, who had said such measures were needed to save the US car industry from “complete obliteration”, has ordered his administration to eliminate electric vehicle mandates and undo regulations governing automotive pollution and fuel-economy standards. The directive also calls for regulators to consider eliminating unfair subsidies that favour EVs over other technologies. Repercussions could extend well beyond the US to global carmakers and battery manufacturers.
US EV policies have played a pivotal role in the industry’s growth, setting the stage for a rosy outlook. The number of EVs on US roads was expected to reach 27mn by 2030 and 92mn by 2040, according to PwC’s analysis. That expansion would have also meant a significant boost for EV battery suppliers, who stood to benefit from the sector’s rapid acceleration.