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Why China is winning the EV war

Vox

1.5M Views . 2024-06-07

And what it means for US climate goals. Support our work. Become a Vox Member today: http://www.vox.com/memberships The Biden administration set a climate goal that 50 percent of all new car sales in the US would be electric by 2030. Meanwhile, China reached that milestone this year, in 2024. This video explains how China was able to fast-track EV adoption and develop an EV battery that rivals what any other country has been able to do so far. It’s been a decade of government strategies that have created some of the biggest battery companies in the world, like CATL and BYD. The Biden administration wants to keep Chinese cars and batteries out of the country — but our video explains what kind of position that puts the US in in terms of meeting its own climate goals. Sources and further reading: https://www.vox.com/climate/2024/3/4/24087919/biden-tariff-chinese-ev-byd-battery-detroit https://www.technologyreview.com/2023/02/21/1068880/how-did-china-dominate-electric-cars-policy/ https://www.nytimes.com/2024/05/27/business/biden-evs.html https://www.nytimes.com/interactive/2023/05/16/business/china-ev-battery.html https://www.bloomberg.com/news/articles/2023-09-14/from-cheap-money-to-tax-breaks-evs-in-china-get-a-lot-of-love?embedded-checkout=true&sref=qYiz2hd0 https://www.iea.org/reports/global-critical-minerals-outlook-2024 Vox.com is a news website that helps you cut through the noise and understand what's really driving the events in the headlines. Check out http://www.vox.com. Subscribe to our channel and turn on notifications (🔔) so you don't miss any videos: http://goo.gl/0bsAjO Watch our full video catalog: http://goo.gl/IZONyE Follow Vox on Facebook: http://goo.gl/U2g06o Or Twitter: http://goo.gl/XFrZ5H

Ford's plan to build a battery plant in Virginia using technology from Chinese company CATL faced backlash due to concerns about China's influence. This highlights the growing reliance of US automakers on Chinese EV battery technology, which has surged due to extensive government support, including subsidies, cheap loans, and tax breaks.

EV battery technology
China's government support
US-China trade war

  • Ford Motors cut back production of the F-150 Lightning in 2024 due to low sales, partially attributed to the higher price compared to its gas-powered counterpart.
  • The high cost of EV batteries, which make up roughly 40% of an EV's production cost, is a significant barrier to affordability for most US consumers.

Insights from the Text:

1. The Price of Progress: Why EV Adoption is Stalling in the US

The text highlights a key challenge in the widespread adoption of electric vehicles (EVs): their high cost. The average price of a new EV in the US sits at $55,000, making them inaccessible for many consumers. This poses a significant obstacle to achieving climate goals, which are heavily reliant on increased EV adoption.

2. China's Dominant Battery Technology: A Threat to US Automakers?

The text reveals a critical dependence of US automakers on Chinese battery technology, specifically from CATL, the world's largest battery maker. This dependence creates vulnerabilities,

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