Batteries and Vehicles
Policies to encourage the manufacture of batteries and vehicles at scale are critical to bringing prices down.
No obstacle to PEV adoption has been as formidable as the development of battery technology. In short, batteries have never been able to compete with the tremendous energy density of petroleum fuels. The last several years, however, have seen enormous strides in battery technology, substantially lowering costs and increasing range potential. This progress has enabled the design and manufacture of plug-in electric vehicles that can compete with the performance and convenience of gasoline-powered cars.
The largest obstacle to widespread consumer adoption of electric vehicles will be cost, and the primary driver of vehicle cost is battery cost. Driving demand for the vehicles and therefore demand for the batteries will allow manufacturers to achieve scale in production volumes, which will help drive down cost. Additionally, research and development to improve lithium ion chemistries and to develop new battery technologies is critical to continuing to bring down cost and increase energy density (thus increasing vehicle range).
Policies to encourage the manufacture of batteries and vehicles at scale are critical to bringing prices down. In order to speed this process, the Coalition recommends the following:
- Make all vehicle-related tax credits available at the point of sale
- Expand the existing tax credit to include medium- and heavy-duty trucks
- Increase federal spending on advanced-battery R&D
- Establish a program to guarantee battery residual value for a limited number of units
- Establishing tax credits for installing automotive grade batteries in stationary applications
- Encourage federal fleet adoption of plug-in electric vehiclesto help drive scale
- Establishing loan guarantees for retooling automotive assembly lines