A new report from the nonpartisan American Security Project warned the U.S. risks falling further behind China in the global electric vehicle race.
In Michigan, EV adoption is growing but still modest, making up about 4% of all registered vehicles in the state, which is about 310,000 EVs out of 8 million total vehicles on state roads.
Katherine Yusko, research analyst at the project and the report's lead author, explained the pace of EV sales in the U.S.
"They have slowed a little bit," Yusko observed. "They've been less dramatic than perhaps was expected, and this is in part because of the politicization of electric vehicles, their association with climate change, people worry. People have range anxiety. But nevertheless, the U.S. is still expanding."
The report added the American EV market is a strategic asset and without bold investment and new trade alliances, the U.S. could cede the future to China. Right now, China is the largest EV market in the world by a wide margin, producing 70% of the world’s EVs and 80% of the world’s lithium-ion batteries.
Michigan is positioned to become a leader in battery production by 2030, with billions in investments planned but the goal hinges on federal policy to support it. Yusko argued government support serves an important role in the success of any nation's EV industry.
"In China, we see the government playing a substantial part in really driving forward the EV factor, and we could see the same happen in the U.S., not perhaps in the same way," Yusko noted. "But, certainly, the government has major influence over the course of this industry."
Yusko pointed out Tesla once led in EV sales worldwide, until China’s Build Your Dreams, or BYD, took the top spot in 2024.
