The Start of a New Phase in American Manufacturing
When our last newsletter came out the last week of July, I wrote that the electric vehicle (EV) market in the US was heating up, and this has certainly proven to be true in the past month.
On August 5th, President Biden signed a monumental executive order that set an ambitious new target for American auto manufacturers: 50% of new model sales will run on electric batteries by 2030. For context, electric vehicles accounted for only 2.2% of US light-vehicle registrations through May 2021, but the forecast is bright.
Even before Biden’s executive order, IHS Markit expects the market share of EVs to grow from 3% of sales in 2021 to 32.3% by 2030, while gasoline-powered vehicles’ grip will shrink from 87% of sales to just 36.5%.
With this gauntlet officially thrown down, many players will have to work together to meet President Biden’s ambitious goals. To get there by 2030, we must rapidly…
Develop the supply chain for battery manufacturing in the US.
Increase battery production capabilities for EVs.
Focus on developing battery and material production skill sets in the States.
Perhaps the most promising development in the month of August will support this mission. I’m referring, of course, to the bipartisan infrastructure bill that the Senate passed on August 9th. This bill includes many measures – including heavy investment in the recharging infrastructure – necessary to get consumers to buy the electric vehicles the President wants to see moving through auto plants and sales lots around the country in the next nine years.
While this bill is still making its way through the House of Representatives, all signs point to a greener future for American auto production.
With these historic plans in place, we also saw key players make big moves that bode well for component and infrastructure manufacturers. This heart of the developing story continues to be located here in the Midwest, where American manufacturers and labor are poised to shift their efforts to address the transportation and energy challenges, not just of the future, but of our present moment.
If you have any questions or if you’d like to hear more about how NanoGraf’s work fits into this picture, please don’t hesitate to email us directly at contact@nanograf.com.
- Francis
