How Policy Actions Can Spur EV Adoption in the United States

The passage of the Inflation Reduction Act (IRA) in 2022 signaled a turning point in EV adoption by providing incentives for passenger and commercial vehicles, domestic battery production, and charging infrastructure development.

Coupled with the Environmental Protection Agency’s newly proposed tailpipe emissions rules, the potential to significantly accelerate EV adoption and the transition to clean energy is considerable: RMI estimates that EV sales share with the IRA credits will be 76 percent for private cars, close to 100 percent for Class 1–3 commercial fleets, and 84 percent for medium- and heavy-duty trucks by 2032. Realizing the IRA’s full potential will lead to the sale of an additional 37 million EVs cumulatively between 2023 and 2032, reducing 831 million tons of CO₂ emissions by 2032 and 2.4 gigatons by 2040.

Governments, policymakers, businesses, and utilities will need to work together closely to realize the full potential of the IRA. They’ll need to focus on:

1. Establishing a circular, diverse, and ethical battery supply chain;
2. Providing greater charging availability; and
3. Investing in grid modernization to power electric medium- and heavy-duty trucks.

RMI’s report How Policy Actions Can Spur EV Adoption in the United States, provides stakeholders with the analysis they need to make data-informed decisions, detailing the challenges facing IRA implementation and ways forward.