BYD Claims Act Blocks Affordable EVs – Is it Logical?
BYD’s Stance on the US EV Market
Chinese electric vehicle (EV) giant BYD believes that the USA’s Inflation Reduction Act of 2022 is preventing the sale of cheap electric cars in the United States. BYD’s Stella Li claims that the US isn’t “under our current consideration” due to the Act, although it is worth noting that this didn’t prevent BYD from entering the US market before the Act was introduced.
Why Has the US EV Market Been a Low Priority?
Companies trying to sell electric cars have focused on China and Europe because of strict requirements to sell electric cars or face significant fines. The US has had financial incentives for electric vehicles but without strong requirements, automakers have not prioritized the region. Furthermore, the rapid growth of EV sales has put a strain on the global battery supply chain, limiting the availability of EVs in less prioritized markets like the US.
How Does the Inflation Reduction Act Impact the US EV Market?
The Inflation Reduction Act is aimed at increasing battery supply by subsidizing battery pack factories, battery cell factories, battery component mining, and battery component refining. This greater supply will enable more robust EV growth in the US and is expected to make the global EV market more competitive. However, BYD, the world’s second-largest battery producer, may not benefit from this increased competition as the Act specifically incentivizes EV battery production in the USA.
What does this all mean?
While the Inflation Reduction Act may have a short-term impact on the competitiveness of some Chinese EVs in the US market, it ultimately increases US competitiveness in the long-term and adds more battery supply to the global EV market. In conclusion, it is a net win for cheap EVs.
Story at cleantechnica.com – 2023-06-15 01:36:32
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