What’s Driving the Fall in US EV Adoption?

Core Insights - The U.S. auto industry faces increased uncertainty regarding its electric vehicle (EV) future due to challenges such as cost concerns, sluggish adoption, and policy reversals [1][2] Group 1: Company Actions - General Motors (GM) CEO Mary Barra committed to zero emissions by 2030, eliminating gas and diesel vehicles [1] - GM announced a $1.6 billion loss to scale back its EV operations, attributing this to weaker expected demand influenced by recent U.S. policy changes [2] - GM has paused the second phase of its Ultium CAM project for producing cathode active materials for EV batteries, citing evolving market dynamics [4] Group 2: Industry Trends - The expiration of the federal EV tax credit on September 30 has contributed to a slowdown in EV sales, which surged by 40% in Q3 due to a rush before the subsidy ended [5][6] - The second quarter of 2023 saw a decline in new EV sales by 6.3% year on year, indicating a curbed growth trajectory for the EV market [6] Group 3: Partnerships and Supply Chain - The planned expansion of a battery facility in Bécancour, Quebec, is on hold, with the first phase of the Ultium CAM project set to open in 2026 [3] - Brazilian mining giant Vale SA has scrapped plans for a nickel sulfate plant that would have supported the second phase of the Ultium CAM project due to GM's decision [5]