Which electric cars have the most range?
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Which electric cars have the most range?

  • For 2025, dozens of EV variants top 300 miles of range
  • The top-ten list contains pickups, SUVs, crossovers, sedans, and a hatchback
  • Standouts like Lucid Air and Hyundai Ioniq 6 manage market-leading range without huge battery packs

Less than a decade ago, 300 miles seemed like the holy grail for EV driving range. Now, even as the overdue reality of plentiful charging infrastructure and speedy roadside charging begins to take shape, some new EVs promise 500 miles of range.

EVs got to 300 miles with the Tesla Model S in 2016. In the years since then there’s been no turning back—especially as fast-charging infrastructure has lagged, and adoption of EVs beyond California and the “smile” states has brought cold-weather range concerns

Now there’s a whole crop of EVs with U.S. EPA ratings topping 350 miles, including several that top 400 miles. In 2023, 270 miles was the median, and it may soon be 300 miles.

2024 Rivian R1T

2024 Rivian R1T

You may also notice that there’s no shortage of trucks on this list. For instance, three of the eight vehicles that top 350 miles of EPA range are large pickups. With the arrival of big-battery Max Pack versions, Rivian’s R1S and R1T electric trucks both top 400 miles. And more are on the way. The fully electric Ram 1500 REV arriving early next year is aiming for 500 miles of range with its top version set to have a massive 229-kwh battery pack.  

Getting the top range on many of these vehicles comes at a steep price, too. GMC, for instance, makes the larger 205-kwh battery pack a $9,995 option on the Hummer EV 3X Pickup on top of its $106,945 base price. That results in “GM-estimated” EPA-cycle ratings of 381 miles, or 359 miles with the available Extreme Off-Road Package. Those are unofficial though as the huge battery pack throws the Hummer into the medium-duty truck weight category with commercial trucks. 

Not every EV offering well beyond 300 miles of range is expensive, and there are some noteworthy standouts. For instance, the 2025 Chevrolet Equinox EV is rated at 319 miles of range, and GM is now delivering examples that carry a $34,995 base price. 

2025 Chevrolet Equinox EV

2025 Chevrolet Equinox EV

We limited this list to vehicles that had official EPA range and efficiency ratings available at the EPA’s FuelEconomy.gov site as of Nov. 4, 2024, making exceptions for vehicles that are currently being delivered—like the Tesla Model 3 Long Range RWD. Vehicles for the 2025 model year were listed when possible, also listing 2024 models that are still available when avoiding redundancy. 

Likewise, to avoid repetition, we’re only listing the top-range model of each nameplate. It should be noted, for instance, that the entire Lucid Air lineup lands above 350 miles. 

EV range: weight and cost matter

Many of these vehicles achieve their range with huge battery packs that store enough energy to power houses (or commercial buildings) for days, and in pragmatic terms their battery packs cost (and weigh) as much as gasoline compact cars. 

If you’re thinking lean and green, this should definitely spark new questions about whether we need so much battery capacity and range, when many EVs are second or third cars tasked with daily commuting.

The list shows minimum price (including destination and mandatory fees) for that amount of range, as well as the curb weight and battery pack size for context. Generally, heavier vehicles mean a larger pack and more energy used.

All that said, here’s our list of the top ten 2024 and 2025 EVs with the most range. 

2024 Lucid Air

2024 Lucid Air

2025 Lucid Air Grand Touring

EPA range: 512 miles (19-inch wheels)
EPA combined efficiency: 3.8 mi/kwh
Curb weight: 5,204 pounds
Price: $112,400

2025 Chevrolet Silverado EV

2025 Chevrolet Silverado EV

EPA range: 492 miles
EPA combined efficiency: N/A
Curb weight: 8,800 pounds (est.)
Price: $97,895

2025 Rivian R1T

2025 Rivian R1T

EPA range: 420 miles (22-inch wheels)
EPA combined efficiency: 2.6 mi/kwh
Curb weight: 7,300 pounds (est.)
Price: $85,700

2025 Rivian R1S

2025 Rivian R1S

EPA range: 410 miles (22-inch wheels)
EPA combined efficiency: 2.5 mi/kwh
Curb weight: 7,200 pounds (est.)
Price: $91,700

2024 Tesla Model S. - Courtesy of Tesla, Inc.

2024 Tesla Model S. – Courtesy of Tesla, Inc.

EPA range: 402 miles (19-inch wheels)
EPA combined efficiency: 3.6 mi/kwh
Curb weight: 4,560 pounds
Price: $76,380

2025 GMC Hummer EV

2025 GMC Hummer EV

EPA range: Est. 381 miles (22-inch wheels, $9,995 Extended Range Battery)
EPA combined efficiency: 1.6 mi/kwh
Curb weight: 9,000 pounds (est.)
Price: $116,940

2925 Mercedes-Benz EQS

2925 Mercedes-Benz EQS

EPA range: 371 miles (21-inch wheels)
EPA combined efficiency: 2.8 mi/kwh
Curb weight: 5,600 pounds (est.)
Price: $128,500

2024 Tesla Model 3

2024 Tesla Model 3

EPA range: 346 miles (18-inch wheels)
EPA combined efficiency: N/A
Curb weight: 4,030 pounds
Price: $44,130

2025 Hyundai Ioniq 6

2025 Hyundai Ioniq 6

EPA range: 342 miles (18-inch wheels)
EPA combined efficiency: 3.9 mi/kwh
Curb weight: 4,376 pounds
Price: $43,850

2024 Tesla Model X

2024 Tesla Model X

EPA range: 335 miles (20-inch wheels)
EPA combined efficiency: 2.9 mi/kwh
Curb weight: 5,148 pounds
Price: $81,630

Pro-Trump EV disinformation worked in Michigan, polling suggests
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Pro-Trump EV disinformation worked in Michigan, polling suggests

EV policy was one of the top issues for Michigan voters in the 2024 Presidential election. And in a state where the Biden administration’s policies have created some of the most jobs, negative messaging may have helped deliver the key swing state to Donald Trump.

That’s the conclusion of a postmortem report by the American EV Jobs Alliance, which noted that by Election Day, more than $30 million had been spent in Michigan on television ads that mentioned EVs—94% of the $35.5 million spent in total on EV-related political ads nationwide.

Influence of EV policy on Presidential vote - American EV Jobs Alliance

Influence of EV policy on Presidential vote – American EV Jobs Alliance

Pro-Trump ads tended to focus on an erroneous narrative that Vice President Kamala Harris would ban internal-combustion cars if elected, devastating Michigan auto-industry jobs in the process, according to the report. But for the most part Democrats did not respond with ads defending the party’s EV policies, with 89% of ads attacking Democrats.

The negativity had an impact, the report found. In a poll two weeks before the election, twice as many Michigan voters believed that a push for more EVs would be bad for Michigan jobs, and 73% of auto-industry households believed this. More than half (61%) believed that pushing for more EV sales would be a bad thing for Michigan, and more than a third believed that it was “probably true” that Democrats planned to ban gasoline vehicles. 

2022 GMC Hummer EV pre-production at Factory Zero plant in Detroit, Michigan

2022 GMC Hummer EV pre-production at Factory Zero plant in Detroit, Michigan

Michigan has gained nearly 20,000 new manufacturing jobs from EV investment, and it’s carved out the space for more with examples like the EV conversion of GM’s Lansing Grand River plant, otherwise in danger of closing, aided by $500 million of federal funds designated by the Biden administration. But the lack of positive ads mentioning this meant those gains and examples were largely unknown to voters in the state, the report concluded.

Uninformed Michigan voters may soon feel the consequences of their actions. The incoming Trump administration is likely to curtail EV investments. During the campaign, Trump reportedly offered to nix EV incentives in exchange for a $1 billion donation for Big Oil, and scrapping the federal EV tax credit is reportedly near the top of the agenda for his transition team. And while China’s CATL is willing to negotiate with Trump on a U.S. battery factory, his own party has drafted legislation to eliminate subsidies for batteries based on Chinese tech.

Future Stellantis EVs might flex 800V at 400V Superchargers
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Future Stellantis EVs might flex 800V at 400V Superchargers

  • Patent enables higher charge rates from lower-voltage DC fast chargers
  • Solution adds a series of relay switches and a capacitor
  • It’s a smart workaround for Tesla V3 Superchargers, which can’t charge at 800 volts

Stellantis is working on hardware to boost the output of low-power DC fast-chargers for electric vehicles that can handle that extra power, while keeping added weight and complexity to a minimum.

Between the lines, although the patent makes no mention of Tesla, it could make a serious real-world charging difference. The idea might allow 800-volt EVs—large EVs like the upcoming Ram 1500 REV—to charge at a higher rate when plugged into sub-800-volt fast-charge connectors, such as the vast majority of those on the Tesla Supercharger network.

Stellantis confirmed plans to adopt the Tesla-based charge port, otherwise called NACS and now part of a standard called SAE J3400, in February.

Rivian NACS adapter

Rivian NACS adapter

This proposed boost system is described by the automaker in a patent filing published by the United States Patent and Trademark Office (USPTO) Oct. 31, 2024, but originally filed Apr. 25, 2023. In it, Stellantis says the system is designed to take full advantage of the charging capabilities of 800-volt vehicle electrical architectures even when charging at 400-volt DC fast-charging stations.

Stellantis DC fast-charging boost system patent image

Stellantis DC fast-charging boost system patent image

While dedicated DC boost modules exist, these add significant cost and weight, and can be difficult to package, Stellantis says in the document. As an alternative, the automaker proposes using a series of relay switches to boost voltage. These switches, along with a small DC capacitor, would be the only additional components needed, according to Stellantis, which added that such hardware could be applied to plug-in hybrids as well as EVs.

When charging at a lower-power station, the relay switches would allow current to flow through a vehicle’s inverter and an electric motor during charging, with those components generating two AC phase currents that could be converted into a third, higher-power DC current that would then be fed into the battery.

Stellantis DC fast-charging boost system patent image

Stellantis DC fast-charging boost system patent image

The feature might not immediately be relevant for all that many models. Stellantis is sticking with a 400-volt architecture for most of the near-term EVs built on its STLA platform strategy set to underpin the 2024 Dodge Charger Daytona and 2024 Jeep Wagoneer S. But it has confirmed those big Ram EVs will charge at 800 volts.

Streamlining charging hardware has been a major focus for Stellantis. In 2023 the automaker discussed plans to drop onboard chargers and inverters altogether in a bid to simplify future EVs.

EVs are in different kinds of fender-benders, claims data reveals
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EVs are in different kinds of fender-benders, claims data reveals

  • Insurance claims suggest EVs are in different types of lower-speed crashes
  • EVs are more likely to be rear-ended, less likely to have front-end damage
  • Combustion vehicles and EVs are full-loss totaled at about the same rate

EVs are more often involved in different kinds of collisions than internal-combustion cars, data from Mitchell International show, with one-pedal driving systems potentially contributing to this.

Mitchell, which provides tech for the auto insurance and collision repair industries, has previously reported that EV collision repair costs are higher than those for gasoline vehicles. Now the company is delving into the types of fender-benders EVs tend to be involved in versus internal-combustion cars.

In a press release published Wednesday, the company said its data shows that EVs are more likely to sustain rear-end damage than internal-combustion vehicles, with those collisions accounting for 35.9% of EV collisions and 27.5% of internal-combustion vehicle collisions, respectively. Combustion cars have a higher frequency of front-end collisions, at 31.5%, compared to 25.8% for EVs.

2025 Kia Niro EV

2025 Kia Niro EV

Mitchell believes this is likely down to two main factors. One is that EVs tend to be newer, meaning they’re more likely to have the latest front-collision avoidance tech. The company also cited the “different braking dynamics” of EVs in one-pedal mode, which could cause more rapid deceleration that drivers in following cars aren’t prepared for.

While collisions involving a front-end impact are 40% costlier on average than those involving a rear-end impact, EVs still remain costlier to repair overall, according to Mitchell. The company’s data shows that in Q3, insurance claims for repairable vehicles in the U.S. averaged $5,560 for EVs, $5,229 for plug-in hybrids, $4,426 for mild hybrids, and $4,741 for non-hybrid combustion vehicles.

That continues a trend from Q2, when Mitchell found that EV collision-repair costs were 20% higher than those for other vehicles. High repair costs were also among the reasons cited by Hertz for slowing its EV plans.

2025 BMW i4

2025 BMW i4

The latest report from Mitchell did provide a hint about why this may be the case. While about the same percentage of parts are repaired, BEV vs ICE, BEV repairs require 90% original-equipment manufacturer (OEM) parts, while ICE models require 64% OEM parts. The rest come from the aftermarket, likely at a lower cost than OEM parts.

EVs and combustion vehicles are written off as a total loss at about the same rate—9.9% of all claims. The average market value of EVs declared a total loss is $32,718, fairly close to the $31,070 average for 2021-or-newer combustion vehicles, which Mitchell judged to be most similar to EVs in complexity and cost to repair.

High EV repair costs are well-documented, but we’re now also seeing hints that the different driving dynamics of EVs may play a role in the frequency of collisions. In addition to Mitchell’s citing of one-pedal driving as a factor in rear-end collisions, a report published last month found that EV drivers are more likely to be at fault in crashes, and noted that drivers’ behavior changed when switching to an EV.

Next-gen Jaguar EV prototype teased
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Next-gen Jaguar EV prototype teased

Jaguar has finally provided a glimpse of the first of what the automaker claims will be a full lineup of electric vehicles.

The automaker on Thursday showed a heavily camouflaged of a four-door grand tourer, sporting an exaggerated hood and fastback-like profile—likely with a liftgate rather than a trunklid at the rear. It will be one of three EVs in the planned lineup, with the other models expected to be an SUV and a more traditionally-styled sedan.

A concept version of this upcoming EV was first confirmed by Jaguar last year and is expected to debut at 2024 Miami Art Week, which kicks off Dec. 2. The production model has been confirmed by Jaguar as debuting in 2025, with deliveries starting the following year.

Next-generation Jaguar EV prototype

Next-generation Jaguar EV prototype

Jaguar said last year that the EV would be priced from about 100,000 British pounds (approximately $127,000 at current exchange rates), and offer more power than any previous Jaguar road car. It will also aim for at least 430 miles of range on the European WLTP testing cycle, which could still translate to more than 300 miles of EPA range.

All three new Jaguar EVs will get North American Charging Standard (NACS) ports for Tesla Supercharger access, and will be based on a new platform called JEA (Jaguar Electrified Architecture) that won’t be used by sibling brand Land Rover. However, the Jaguar will be built alongside Land Rover models at parent JLR’s plant in Solihull, U.K.

Next-generation Jaguar EV prototype

Next-generation Jaguar EV prototype

Jaguar was one of the first established luxury brands to dabble in EVs, launching the I-Pace crossover in 2018. But it has had trouble deciding on next steps. It had planned to introduce an all-electric flagship sedan in 2021 as a replacement for the gasoline XJ, while continuing to evolve the I-Pace with a second generation, but both models were eventually scrapped in favor of a clean-slate approach.

For now, Jaguar is discontinuing nearly all of its current models—including the I-Pace—before introducing its new lineup of EVs. The gasoline F-Pace crossover is slated to remain Jaguar’s only model until they arrive, a situation Jaguar managing director Rawdon Glover has called “hugely frustrating.”

Report: Nixing EV tax credit is a Trump priority, with Tesla support
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Report: Nixing EV tax credit is a Trump priority, with Tesla support

The incoming Trump administration will prioritize eliminating the $7,500 federal EV tax credit, a move that has the support of Tesla, Reuters reported Thursday.

Nixing the EV tax credit is being discussed by Trump’s transition team as part of broader tax legislation, according to the report, which cited two anonymous sourced familiar with the matter. The transition team views the eliminating the EV tax credit as an easy target that would get easy approval from the Republican-controlled Congress, the report said, while noting that the administration needs cost savings in order to pay for trillions of dollars in tax cuts set to expire early in Trump’s term.

2025 Nissan Leaf

2025 Nissan Leaf

The two sources also told Reuters that representatives of Tesla have told a Trump-transition committee that they support ending the tax credit. Tesla is the largest U.S. EV brand, but the automaker is likely making a bet that ending the tax credit will have a bigger effect on competitors less established in the EV market. It also keeps Tesla CEO Elon Musk—an enthusiastic supporter of Trump—on the same page as the President-elect.

Under the Biden administration, the EV tax credit was revamped under the Inflation Reduction Act (IRA) of 2022. It became an instant dealership rebate at the beginning of 2024, but also added more restrictions on which vehicles qualify. Those related to the origin of battery components and critical minerals, in addition to requirements for North American assembly and price and income caps that were phased in previously.

2025 Lucid Air Pure

2025 Lucid Air Pure

Considering those sourcing sourcing requirements, the purchase credit depends on paperwork and manufacturing nuance, too. That’s led to some U.S.-made models, like the Nissan Leaf, flowing in and out of qualification.

The most maligned piece of the tax credit may be the so-called “leasing loophole,” which applies $7,500 toward leased EVs no matter where they’re made or the sticker price. Democrats reportedly haven’t touched it in the present session of Congress for risk of sending all the credits back for a vote.

Study: 57% EV in 10 years requires "strategic reset" from automakers
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Study: 57% EV in 10 years requires “strategic reset” from automakers

  • Rate of acceleration for global EV adoption has slowed, firm suggests focus beyond early adopters
  • Study relates EV adoption to Strategist, Individualist, Carer, Conservative, and Frugal psychographic profiles
  • Prior to “reset,” 43% of non-EV drivers are already considering an EV next

Automakers stand to substantially grow global EV sales over the next 10 years, but only if they refocus from tech-savvy early adopters to mainstream buyers, argues a new study from consulting firm Accenture.

The study predicts that 57% of drivers will have switched to EVs within the next 10 years, with 43% of non-EV drivers already considering an EV for their next vehicle purchase. And 47% of drivers “are convinced that the future belongs to electric vehicles,” according to the study. That’s based on a survey of 6,000 car buyers in the U.S., China, Italy, Germany, France, and Japan.

EV sales growth isn’t happening at as steep a rate. While global EV sales saw a 35% year-on-year increase in 2023, that was down from 55% in 2022 and 121% in 2021, the study noted. That should still be seen as a feat after the pandemic catch-up years of 2021 and 2022, but analysts believe automakers will need a “strategic reset” to generate more EV sales.

2024 Tesla Model S. - Courtesy of Tesla, Inc.

2024 Tesla Model S. – Courtesy of Tesla, Inc.

Instead of focusing on tech features, which has been effective in attracting early adopters, Accenture believes automakers should focus on the more practical concerns of mainstream buyers. The majority of car buyers (80%) prioritize reliability, safety, and affordability, so automakers should prioritize those factors as well, the firm argues.

Accenture assembled psychographic profiles of different types of potential EV buyers. While the “Strategist” and “Individualist” value things like luxury and technology features, respectively, the “Carer” views cars merely as tools, the “Conservative” emphasizes reliability, and late-adopting “Frugal” car buyers will only make the switch to an EV once costs reach a certain threshold.

2025 Volkswagen ID.4

2025 Volkswagen ID.4

Other studies have come back with similar findings on lagging EV interest. A Gallup poll last year underscored that fewer Americans are aspiring to EV ownership than had been the case just a year earlier. And a 2023 J.D. Power study found that U.S. EV adoption is becoming more polarized by state.

More than a decade ago as some paid nearly $40,000 for versions of the Nissan Leaf and other early EVs with sub-100-mile range, it was underscored that those EV pioneers and early adopters are night-and-day different from mainstream auto buyers—in many respects. Focusing on what matters for mainstream shoppers—practicality and cost—may be the obvious direction if automakers truly want to get serious about upping their EV sales.

2025 Polestar 3 gets less expensive, longer range RWD model
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2025 Polestar 3 gets less expensive, longer range RWD model

The 2025 Polestar 3 just got cheaper with the addition of a single-motor, rear-wheel-drive model to the lineup.

Now live on Polestar’s configurator, the rear-wheel-drive powertrain drops the 3’s base price to $68,900 with a $1,400 destination charge. That’s down from $74,800 previously, when only a dual-motor all-wheel-drive setup was available.

2025 Polestar 3

2025 Polestar 3

Losing the front motor drops output to 299 hp versus the dual-motor 3, which is rated at 489 hp in standard form and 517 hp with the optional Performance Pack. But range increases to an EPA-estimated 350 miles, compared to 315 miles for the standard dual-motor model and 279 miles with the Performance Pack. All versions use the same 111-kwh battery pack.

Despite the lower price, the single-motor Polestar 3 features similar equipment to the dual-motor version. This includes 20-inch wheels, Brembo brakes, heated side mirrors, LED headlights, a power tailgate, and Polestar’s Pilot Pack suite of driver aids. That includes a surround-view camera system, cross-traffic warnings, and Pilot Assist highway driver-assist system.

2025 Polestar 3

2025 Polestar 3

Built in South Carolina, the Polestar 3 started U.S. deliveries earlier this month after software-related delays. It’s a platform-mate of the Volvo EX90, which is assembled at the same plant, but is offered only with two rows instead of the Volvo’s three, and aims for a sportier character. 

Polestar is going in the opposite direction regarding pricing and configurations of its other current U.S. model. The 2025 Polestar 2 drops its single-motor option and is available only in one fully-loaded grade costing $66,200—up from $51,300 from the previous base price of the single-motor model. Nonetheless, Polestar told Green Car Reports that it is committed to a three-model U.S. lineup with the 2, 3, and the new-for-2025 Polestar 4 coupe-like SUV.

Tesla Cybertruck recalled for sixth time, may lose drive power
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Tesla Cybertruck recalled for sixth time, may lose drive power

The Tesla Cybertruck is being recalled due to an issue that could cause a loss of propulsion, which makes for the sixth recall of the electric pickup truck since deliveries started earlier this year.

This recall, which covers 2,431 vehicles, addresses a potential fault with the affected trucks’ inverters that could cause an immediate loss of torque to the wheels, according to the National Highway Traffic Safety Administration (NHTSA).

2025 Tesla Cybertruck - Courtesy of Tesla, Inc.

2025 Tesla Cybertruck – Courtesy of Tesla, Inc.

No warning occurs prior to the loss of torque, but once it happens drivers will see a warning on the dashboard display advising them to pull over safely, the agency added. The lack of response from the accelerator pedal might also be a clue that something is wrong.

Tesla estimates that just 1% of the recalled vehicles actually have the fault, which has been the subject of five warranty claims as of Oct. 30. The automaker told the NHTSA it is not aware of any collisions, fatalities, or injuries related to the problem, however.

2025 Tesla Cybertruck - Courtesy of Tesla, Inc.

2025 Tesla Cybertruck – Courtesy of Tesla, Inc.

While Tesla has been able to address numerous issues with over-the-air updates so that customers don’t have to visit service centers, that isn’t the case here. The remedy is replacement of the inverter, which Tesla service centers will perform free of charge. Tesla expects to mail owner notification letters Jan. 4, 2025. Owners can also contact Tesla customer service at 1-877-798-3752 for more information. Tesla’s reference number for this recall is SB-24-40-009.

The Cybertruck was previously recalled five times in the past 11 months. The problems that triggered those previous recalls ranged from busted wiper motors and loose trim to “trapped” accelerator pedals” and rearview cameras with image delay issues.

Report: US may undercut China on batteries by 2030
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Report: US may undercut China on batteries by 2030

The U.S. could produce cheaper EV batteries than China by 2030, according to a new report by analysis firm Benchmark Mineral Intelligence (via Politico). But that depends on Biden administration policies undergirding current battery-manufacturing momentum staying in place.

The cost reductions are dependent on tax credits from the Inflation Reduction Act (IRA), according to the report. The 2022 legislation, which Benchmark notes has already led to a “surge” in battery investments, offers a manufacturing tax credit of up to $35 per kwh for U.S.-produced cells up to 2029.

With tax credits taken into account, the average cost of U.S. battery production at the cell level could fall from $118 per kwh today to $76.8 per kwh in 2029, according to analysts, giving U.S. battery factories the “lowest-cost operations globally”—erasing China’s current cost advantage and perhaps allowing more exports from U.S. plants.

Rendering of planned General Motors Ultium Cells Lansing battery plant

Rendering of planned General Motors Ultium Cells Lansing battery plant

Key to this scenario is whether the incoming Trump administration continues to set aside funds for battery-manufacturing tax credits. The IRA may have created enough jobs to save it from being killed outright, but the administration could use any discretionary power it has under the legislation to hold back battery subsidies. Trump reportedly offering to nix EV incentives for a very large donation from Big Oil during the campaign.

Even with the tax credits intact, achieving cheaper EV batteries in the U.S. faces additional obstacles. Companies may cancel projects if EV demand doesn’t rise as quickly as expected, the report noted. Since the IRA was passed in Aug. 2022, 23 new battery factories have been proposed, which would bring the total number of U.S. battery factories to 40. But over a third of these new projects haven’t begun construction, analysts found.

The average construction time for new battery factories in North America is also 30 months, compared to 20 months for China, according to the report. Unionized workforces and less access to refined battery materials also makes battery production more expensive in the U.S. than in China, analysts said. Some cost reductions are expected once factories are up and running, though.

Ford Blue Oval City - rendering of manufacturing complex in Tennessee, September 2021

Ford Blue Oval City – rendering of manufacturing complex in Tennessee, September 2021

Yet the IRA is boosting the financial case for making batteries in the U.S., the report emphasized. LG Energy Solution said earlier this year that IRA tax credits had turned its operating income from a loss of 235 billion won (approximately $180 million at current exchange rates) to a profit of 195 billion won ($138 million) in the second quarter. And Panasonic reported that tax credits increased its earnings margin from 7% to 18% for the fiscal year ending in 2024.

Cheaper batteries make for cheaper cars, which could have a bigger long-term impact on EV adoption than tax credits for vehicle purchases themselves. A recent study by the Stanford Institute for Economic Policy Research (SIEPR) found that, while IRA tax credits have helped lower emissions and boost U.S. manufacturing, they tend to go to people who would have bought an EV anyway and are thus of questionable value.