The long-anticipated move to a cleaner, greener driving ecosystem is no longer just a hazy vision across a distant horizon—it’s fast becoming a reality.
Spurred in part by a $135 billion federal appropriation that facilitates EV development and extends tax credits to purchasers, U.S. automakers are announcing more electric fleets and increasing their investments in new technologies and EV battery plants. The market potential is enormous. More than 120 countries have announced emission pledges to reach net zero in the coming next decades, and with 20 committing to full phase-outs of internal combustion engines, according to the International Energy Agency.
Investment Bank UBS projects that EVs will capture 20% of global new car sales in 2025, and 2030 is even more promising, with anticipated share predicted to reach 50%. The only element missing from the equation is the lack of charging stations. But they’ll be here soon because a recent infrastructure bill gives the states $5 billion to build and install chargers along interstate highways, with the goal of placing one every 50 miles.
Auto manufacturers and tier 1 and 2 suppliers are excited about these developments. In a global survey commissioned by Molex and conducted by Dimensional Research, 93% agreed that electrification is on the cusp of a huge breakthrough. But those same manufacturers also realize they must overcome some significant technical hurdles to make EV technology work as well as consumers expect.