“To qualify for a credit, an E.V.’s “final assembly” must occur in North America. If that sounds complicated for a consumer to figure out, the Department of Energy recommends searching individual cars by Vehicle Identification Number (VIN) “to identify a vehicle’s build plant and country of manufacture.” Past that, at least 40 percent of the battery’s minerals and 50 percent of its components must be sourced either from the U.S. or a country with which it has a “free trade agreement.” Those numbers will go up each year until they reach 80 percent and 100 percent, respectively. Meeting only one percentage requirement and not the other qualifies for half of the credit ($3,750).
The rules were written to exclude China. But China owns or controls the overwhelming majority of materials used in E.V. batteries. Not to mention, the European Union also lacks a free trade agreement with the United States. According to the Energy Department, only 14 vehicle models qualify for the full credit: five from Chevrolet, four from Tesla, two from Ford, and one each from Cadillac, Chrysler, and Lincoln. Some others qualify for half-credits due to sourcing requirements—for example, Ford manufactures the Mustang Mach-E’s battery in Poland—but American companies noticeably account for every single qualifying vehicle.
That’s a great deal for those four companies—Ford, General Motors, Stellantis, and Tesla—but a bad deal for everybody else. Numerous foreign automakers sell E.V.s in the U.S. but are disqualified from tax credits unless they build the vehicles domestically using parts sourced in a very specific way. Meanwhile, two versions of the Chevrolet Bolt—which uses outdated battery technology and was briefly taken off the market in 2021 when its batteries were catching on fire—qualify for the full tax credit under the new rules. So even though a consumer might find the similarly priced Nissan Leaf to be more reliable, a $7,500 tax credit might sway them away from it. That would be a boon to Chevrolet’s bottom line as it still gets to charge full price for the car, and the U.S. government will reimburse the purchaser at tax time.”
“EV fires are relatively rare. Smith said his department has seen just a handful of EV fires. While the US government doesn’t track the number of EV fires, specifically, Tesla’s reported numbers are far lower than the rate for highway fires overall, the National Fire Protection Association (NFPA) told Vox. The overwhelming majority of car fires are caused by traditional internal combustion vehicles. (This makes sense, in part because these vehicles carry highly flammable liquids like gasoline in their tanks, and, as their name implies, their engines work by igniting that fuel.)”
…
“Although they’re relatively rare, electric car fires present a new technical and safety challenge for fire departments. These fires burn at much higher temperatures and require a lot more water to fight than conventional car fires. There also isn’t an established consensus on the best firefighting strategies for EVs, experts told Vox. Instead, there’s a hodgepodge of guidance shared among fire departments, associations that advise firefighters, and automakers. As many as half of the 1.2 million firefighters in the US might not be currently trained to combat EV fires, according to the NFPA.”
“The decline of motor vehicle deaths in America over the past two decades is part of a broader trend that began in the 1960s. Ralph Nader’s seminal 1965 exposé, Unsafe at Any Speed, catalyzed an auto safety movement that culminated in the creation of the National Highway Traffic Safety Administration (NHTSA), which set up the infrastructure for automobile safety.
From the 1970s onward, the NHTSA would maintained a database on motor vehicle-related deaths, make research investments, and provide safety certifications for cars on the market, incentivizing auto companies to adopt safety procedures. The work of the NHTSA and civil society groups like the Insurance Institute for Highway Safety helped usher in a new era where safety features like seat belts and airbags became standardized. All of this, along with measures like universal state licensing of drivers and registration of cars, led to the decline in youth and overall American motor vehicle mortality. The CDC would eventually tout this decline as one of the country’s biggest public health achievements of the 20th century.
And as Lee recounts in the NEJM article, that progress continued into the 21st century. In 1998, frontal airbags became mandatory in all cars and trucks sold in the US. Other improvements like automatic emergency braking, blind-spot detection, side airbags, and rear-facing cameras also contributed to an improved auto safety landscape. “What we’ve seen is more than a half-century of efforts to make the automobile safer,” said Mitchell Moss, a professor of urban policy and planning and director of the Rudin Center for Transportation at New York University.
If cars went one way with safety, guns went the other. Guns are one of the only consumer goods whose safety is not regulated by any government agency. Gun manufacturers are also very insulated from lawsuits, and perhaps consequently, have little incentive to design safer guns, such as “smart guns” that would only be operable by the users they are registered to. As Moss said, “We really have a Wild West approach to the manufacture of weapons in this country.””
“How much of this innovation and aggressive price-slashing is due to government intervention in the clean energy market? It’s hard to tell. E.V. sales have long been boosted by government subsidies that offer electric and hybrid vehicle owners federal income tax credits of up to $7,500 for new cars bought in or after 2010. But in a splendid twist of government logic, carmakers also get punished for being too successful, since customers are phased out of subsidies if the automaker has sold more than 200,000 qualifying units—a threshold Tesla has reached, rendering owners ineligible for tax rebates. Tesla CEO Elon Musk has even criticized such tax credits, noting that they’re simply not needed in order to drive demand for E.V.s. Though likely correct, Musk delivered this critique years after the subsidies were put in place and after his company’s customers became ineligible for it. It’s entirely possible that tax credits helped drive the early transition to E.V., but play less of a role now, and will play no role in the future.
In May, the Biden administration signaled that it would incentivize further E.V. adoption—pursuing ill-advised and market-distorting economic nationalism despite the fact that consumers were already gravitating in that direction (as strong Tesla sales, even post-subsidy-expiration, have suggested, and Musk has confirmed). The administration last month started to put in place a $3.1 billion plan to ramp up domestic production of E.V. batteries. Though packaged as a way “to insulate consumers from the fluctuation of global oil markets,” as The New York Times reports, gesturing at Russia’s war in Ukraine, the shift to mass domestic production of E.V. batteries will take quite a while to implement, and the effects even longer to be felt. It also ignores that much of the lithium, cobalt, and nickel mining needed for these batteries is done in China and will be difficult to scale up to sufficiently meet demand.
Mass electric vehicle adoption need not be spurred by socially conscious word-fluff or well-meaning (but flawed) subsidies; it’s looking like customers want electric vehicles because they’re high-quality, convenient products made increasingly attractive by their lower price and easier maintenance. May the best man win in the coming price wars.”