What was announced in his electoral campaign is being executed to the letter. The recent orders signed by U.S. President Donald Trump could have profound implications on electric vehicles (EVs), slowing the adoption rate, according to a recent report by Wood Mackenzie.
According to the report, the executive orders of the Republican leader destabilize the markets for electric vehicles and batteries. The political changes have impacted the EV, battery, and raw materials markets in the U.S. and at a global level.
Max Reid, principal analyst at Wood Mackenzie, points out that the “Unleashing American Energy” order could have a significant impact on the electric vehicle market, especially if the Administration eliminates the $7,500 tax credits for consumer 30D EVs and commercial 45W EVs.
“This is yet to be determined, but Wood Mackenzie expects the remaining EV credits to have stricter eligibility criteria regarding the sourcing of critical minerals to promote mineral security,” he analyzed.
More Measures
Other measures that could come into play include the relaxation of exhaust emission standards by the Environmental Protection Agency (EPA), which require an EV penetration rate of approximately 70% by 2032, and the elimination of California’s ability to set its own emission standards, thereby removing the zero-emission vehicle (ZEV) mandate, which affects 30% of the U.S. light vehicle market.
“The implementation of a stricter policy could reduce the adoption of plug-in electric vehicles from 32% to 23% by 2030,” says Reid. “Although the extent of subsidy cuts and the details on new emission standards remain unclear, we expect the trajectory of EV sales to be slower than previous forecasts.”
The recent executive order by Trump specifically calls for a 90-day pause to review the plans for National Electric Vehicle Infrastructure (NEVI) and Charging and Fueling Infrastructure (CFI).
Up until 2025 inclusive, $3.2 billion has been allocated to states, but only $600 million has been awarded in contracts for more than 4,500 charging ports.
Latam Mobility on February 20, 2025 in Monterrey
On February 20, 2025, Latam Mobility, the largest sustainable mobility community in Latin America begins its tour in Monterrey, Mexico, with the second edition of the “North America Mobility Summit 2025”.
Mexico has become an important bastion for the region with the arrival of major brands in the automotive industry, with interesting plans to install electric vehicle plants. In this sense, Latam Mobility has established itself as a key player to generate synergy, networking, and alliances between the public and private sectors.
The “North America Mobility & Net Zero Summit” in Monterrey will bring together the most important companies and leaders linked to energy, transportation, fuels, and mobility, to show the progress and prospects of the industry in Mexico, the United States, and the region.
For more details on how to participate and positioning options, email us at: info@investinlatam.org.
Reach out to us via WhatsApp or get your pre-sale tickets for Monterrey here.
