ATLANTA, Oct. 5, 2022 – While vehicle electrification continues to make strides, the lingering effects of the pandemic, the soaring cost of raw materials and geopolitical challenges have contributed to supply chain disruptions that have slowed widespread electric vehicles (EV) growth in the U.S. This perfect storm of bottlenecks outlined in Cox Automotive Mobility’s latest EV white paper titled – “Supply Chain Challenges Impacting Electric Vehicle Adoption” – is driving automakers to reshape their EV businesses and exert greater control over EV battery composition, manufacturing and recycling to propel the electric future.
Cox Automotive Mobility’s detailed EV white paper offers the company’s perspective on the following core themes:
- State of EV Adoption. Americans are buying EVs at a record pace despite rising prices and long waits for delivery. The fleet industry is also taking note with fleet operators highly motivated to replace their gas-powered fleets with EVs to achieve sustainability goals, drive efficiency and reduce total cost of ownership.
- The Importance of Price Parity in Driving Adoption. The electric segment has been hit by the tide of inflation affecting the overall auto industry since the spring of 2021. Tax incentives available as part of the Inflation Reduction Act of 2022 will be critical to consumer adoption, helping offset the cost of pricey EVs.
- Supply Chain Constraints Threatening EV Growth. Global computer chip and material shortages are impacting production, raising the price of new and used vehicles, and contributing to long waits to buy new EV models.
- Building a Robust EV Supply Chain in the U.S. The U.S. currently has a vulnerable EV supply chain heavily reliant on imports for semiconductor chips, raw materials and EV batteries. The country is in a sprint to produce its own EV components in order to increase economic competitiveness and energy independence.
- The Role of Technology. Right now, the U.S. doesn’t have enough domestically supplied materials to keep up with consumer demand, so innovations in battery chemistry, materials substitution and recycling will be key to the transition to EVs.
“This convergence of factors shines an even brighter light on the importance of end-to-end EV battery lifecycle management,” said Lea Malloy, AVP of EV Battery Solutions, Cox Automotive Mobility. “Coupled with government policy support, EV battery first life extension is paving the way for meaningful progress in protecting the planet while accelerating the uptake of EVs in a challenging environment.”
The Cox Automotive Mobility white paper is available for download at EV Whitepaper – Cox Automotive Mobility (coxautoinc.com).
Taking Charge of the Electrified Automotive Future
Cox Automotive Mobility and Spiers New Technologies are extending the EV battery life cycle through a closed loop system that reduces the environmental impact of metals mining and supports the extension of EV battery first lives and end-of-life reuse and recovery treatments. For more information about Cox Automotive EV Battery Solutions, visit www.coxautoinc.com/evbattery.
About Cox Automotive Mobility
Cox Automotive Mobility’s mission is advancing the world’s fleets to serve the next generation. Focused on four primary business areas (Fleet Services, Fleet Operations, EV Battery Solutions and Emerging Ventures), the group is a fundamental enabler of the emerging global transportation ecosystem – one that is autonomous/aerial, connected, electric and shared (A.C.E.S.).
About Cox Automotive
Cox Automotive Inc. makes buying, selling, owning, and using vehicles easier for everyone. The global company’s more than 27,000 team members and family of brands, including Autotrader®, Dealer.com®, Dealertrack®, Kelley Blue Book®, Manheim®, NextGear Capital®, VinSolutions®, vAuto® and Xtime®, are passionate about helping millions of car shoppers, 40,000 auto dealer clients across five continents and many others throughout the automotive industry thrive for generations to come. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with annual revenues of nearly $20 billion. www.coxautoinc.com
Cox Automotive Mobility