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Electric Vehicles

Jordyn Grzelewski

emergingtechbrew.com

That’s the message Ford is pitching amid a bevy of EV deals industrywide ahead of the Sept. 30 expiration of tax credits on EV purchases and leases.

The automaker recently extended through the end of September its Ford Power Promise, which aims to promote at-home charging by providing EV buyers with complimentary home chargers and installation.

“With everything that’s happening in the marketplace, not only the incentives that we have…and the fact that tax credits are still out there for some of these makes and models, now is the time to really double down and get as much as you can as a consumer,” Stacey Ferreira, Ford’s director of US sales strategy, told Tech Brew.

President Donald Trump signed the “One Big Beautiful Bill Act” into law on July 4, nixing EV tax credits from the 2022 Inflation Reduction Act.

Those include a $7,500 tax credit for qualified new EV purchases, a $4,000 credit for qualified used EVs, and a “leasing loophole” that allows automakers to pass on incentives for some models that don’t qualify for the other credits.

EV deals were already plentiful. In June, average EV incentives hit an “all-time high”—14.8% of the average transaction price, according to Cox Automotive.

, analysts expect to see a Q3 surge as buyers interested in going electric look to lock in savings.

“With government-backed incentives set to end in September and economic pressures mounting, the second half of the year will be a critical test of EV demand,” Stephanie Valdez Streaty, senior analyst at Cox, said in a statement. “Q3 will likely be a record, followed by a collapse in Q4, as the electric vehicle market adjusts to its new reality.”

July’s EV lease deals include the Hyundai Kona EV for a monthly payment of $189, according to 

. Lexus is offering 0% financing on its electric RZ, consumers can get a 2025 Kia Nero EV lease for $129 per month for 24 months, and GM is offering 0% interest for 60 months to buy the Chevy Equinox EV, per the outlet.

“There is no better deal than leasing an EV,” Ivan Drury, director of insights at Edmunds, told us. “You can easily get a vehicle that has an MSRP of $15,000–$20,000 more than its ICE equivalent, yet the payments might be the same or lower.”

Though he hasn’t seen many automakers using the looming tax credit expiration to advertise incentives, Drury expects a bigger push closer to September. But consumers shouldn’t wait, he said: “If you were looking at this like, ‘Wow, I want to scoop up a $150-a-month Equinox EV,’ you better get to it.”

The Ford Power Promise is available to retail customers who buy or lease a new 2024/2025 Mustang Mach-E, 2025 F-150 Lightning, or 2024/2025 E-Transit cargo van from a participating Ford dealer.

“The idea was, how can we make that barrier to entry extremely simple for our customers?” Ferreira said. Since debuting the program in October, Ford has installed more than 10,000 home chargers.

Ford didn’t extend the program specifically to align with the 

, Ferreira said, but she expects to see higher sales in Q3 and for some EV fence-sitters to take the leap before Oct. 1.

“There [are] going to be folks that want to get into the vehicles before the tax credit goes away,” she said. “So we’re excited for Q3. We think it’s going to be strong.”

EV sales could see Q3 boost with Trump’s budget bill set to eliminate incentives

Ford sales leaders say “now is the time to buy” with federal tax credit clock ticking down.

What do good rom-coms and electric vehicle batteries have in common? They’ve got the right chemistry.

To that end, the US auto industry is working to commercialize lithium iron phosphate (LFP), a battery chemistry that’s popular in China, as the sector aims to deliver more affordable EVs.

On Monday, Ultium Cells, a joint venture between General Motors and South Korean battery manufacturer LG Energy Solution, announced plans to upgrade its battery cell manufacturing plant in Spring Hill, Tennessee, “to scale production of low-cost lithium iron phosphate battery cells,” according to a news release.

Ultium Cells will start the process of converting battery cell lines at the plant for LFP production later this year, with plans for commercial production to start “by late 2027.” GM plans to incorporate the battery chemistry into its EV lineup alongside nickel-rich batteries, the industry norm today, and 

“At GM, we’re innovating battery technology to deliver the best mix of range, performance, and affordability to our EV customers,” Kurt Kelty, GM’s VP of batteries, propulsion, and sustainability, said in a statement.

Andy Oury, a battery engineer and business planning manager for Kelty, previously told Tech Brew that GM would continue to use nickel-rich batteries for vehicles requiring the longest range, while introducing LFP batteries on entry-level vehicles and LMR batteries “in the middle.”

Another Ultium Cells plant in Warren, Ohio, will continue producing battery cells with nickel cobalt manganese aluminum chemistry, per the release. GM said its goal in introducing LFP battery tech to its EV lineup is to reduce battery pack costs compared to the nickel-rich chemistry it uses in its EVs today.

Lowering battery costs is viewed within the EV sector as crucial to bringing down EV prices.

“By far, the biggest factor that determines the range and cost of an electric car is the battery,” IDTechEx wrote in a January research 

 on LFP batteries. IDTechEx’s research indicates that LFP batteries made up 40% of the global EV market in 2024, and researchers see “a strong opportunity for LFP to continue its growth outside of China,” especially in light of improvements to energy density.

“LFP has a number of advantages over the nickel-rich chemistries that are predominantly used in North America today,” Sam Abuelsamid, VP of market research at Telemetry, told Tech Brew. “The nickel provides for a higher energy density…But nickel cells are much more susceptible to thermal runaway,” which raises the risk of battery fires that are difficult to extinguish.

LFP has lower energy density compared to nickel-rich chemistries, but it’s cheaper, made up of materials that are more readily available, and safer, Abuelsamid said. Despite having lower energy density, he explained, manufacturers can make up the difference by assembling LFP battery packs with more active cell material.

 LFP battery plant in Michigan and licensing technology from Chinese battery maker CATL. The automaker plans to start production on prismatic LFP battery cells and packs next year.

Lisa Drake, Ford’s VP of technology platform programs and EV systems, told reporters during a recent tour of the under-construction facility that Ford executives opted to license the technology rather than continue to invest time and money into their own R&D efforts, in the interest of speed.

“I think in the coming years,” Abuelsamid said, “we will probably see a lot more adoption of LFP in North America just because of its cost advantages and safety advantages compared to nickel cells.”

Image of a person working on an EV battery.

Why automakers like GM and Ford are investing in LFP battery tech

General Motors announced plans to produce LFP EV batteries at a plant in Tennessee.

One of the key factors holding back US electric vehicle adoption is that 

 remain higher, on average, than their internal combustion engine counterparts.

In May, the average transaction price for new EVs was $57,734, according to Cox Automotive, which represents a nearly $10,000 price gap between EVs and ICE vehicles.

But truly understanding the cost proposition of EV ownership may require taking the long view.

 by Atlas Public Policy compared the cost of owning the five most popular ICE models in the US last year to similar EVs. The report examined the total cost of ownership over a seven-year period and took into account purchase price, federal and manufacturer incentives, fuel or electricity costs, insurance, taxes and fees, resale value, and maintenance and repair costs.

The findings suggest that “in all but one case, EVs today deliver savings to owners compared to a similar gasoline vehicle.”

In the compact sedan segment, the analysis found the 2025 electric Nissan Leaf delivered estimated net savings of $2,098 over this year’s Toyota Corolla. For sedans, owners of the 2025 electric Hyundai Ioniq 6 could save $3,340 over seven years compared to the 2025 Toyota Camry, per the report.

For compact SUVs, researchers were able to make as close an apples-to-apples comparison as possible, with the Chevy Equinox EV costing owners an estimated $9,483 less than the gas-powered Equinox. And the Tesla Model Y demonstrated more than $8,000 in savings compared to the Jeep Grand Cherokee.

“That’s even before you count any gas price spikes in states that might have higher gas prices than the national average that we factored in, or for people that drive a lot more than the national average of 11,000 miles,” Daniel Wilkins, a policy analyst at Atlas, told Tech Brew. “So you can see savings with EVs that you might not have considered beforehand.”

The only category in which ICE vehicles won out on total cost of ownership was pickups: The gas-powered F-150 was shown to be about $2,500 cheaper than the electric F-150 Lightning.

The report’s authors noted that transportation is the second biggest expenditure for Americans after housing, and that over 90% of American households have at least one vehicle.

 by RMI earlier this year similarly showed that for commercial fleets, EVs often are more “economical” than “equivalent fossil fuel vehicles,” but noted that the total cost of ownership for commercial EVs would increase without federal tax credits.

Now, those federal tax credits for EV purchases, one of the primary tools used to bring EV prices closer in line with gas-powered vehicles, are 

 as part of Trump’s “One Big Beautiful Bill Act.”

Atlas’s analysis noted that the loss at the end of September of the $7,500 tax credit for new EV purchases is likely to “raise the upfront cost of EVs in the near term,” though it found that the Chevy Equinox EV and Tesla Model Y would still have lower total costs of ownership. Analysts 

 that eliminating the tax credits, along with other federal policy changes, is likely to 

“If you’re shopping for a new car right now, and the EV model that you want still qualifies, the next three months might be key to lock in the full discount,” Wilkins said. “But even after the credit goes away, an EV can still save money, and even more so if you drive a lot and charge mostly at home and live in a state with higher gas prices.”

Report: Total cost of EV ownership cheaper in most vehicle segments

Atlas Public Policy contrasted the cost of owning the five most popular internal combustion engine vehicle models in the US to comparable EVs.

Much like the slacker who doesn’t contribute to the group project, the US may drag down EV adoption globally, thanks to recent federal policy changes.

That’s according to BloombergNEF’s latest 

, which forecasts nearly 22 million battery electric and plug-in hybrid vehicle sales this year, a 25% YoY jump. The analysis attributes this year’s growth to greater availability of more affordable EV models and lower battery costs.

But looking ahead, BNEF’s projections are less optimistic. For the first time, the research group lowered its long- and short-term passenger EV adoption outlook, “largely due to the various policy changes in the US.”

BNEF now expects passenger EV sales in the US to increase from 1.6 million in 2025 to 4.1 million in 2030—14 million fewer than previously projected during that period.

“The roll-back of federal fuel-economy standards, the phase-out of the EV tax credit, and the potential removal of California’s ability to set its own air quality standards result in a notable decline in EV adoption in the US, impacting global adoption rates,” according to BNEF.

The “One Big Beautiful Bill Act,” which President Donald Trump signed into law July 4, 

 of the climate provisions in the 2022 Inflation Reduction Act. Effective after the end of September, the new law 

 a $7,500 tax credit on new EV purchases and a $4,000 credit for used EVs.

“Despite significant leaps in EV adoption globally, stable and comprehensive policy still matters in advancing it further,” Aleksandra O’Donovan, head of EVs at BloombergNEF, said in a statement. “Automakers that lose sight of the longer-term trend towards electrification—supported by falling battery prices and improving economics of EVs—risk being squeezed out of the major car markets.”

EV adoption could be further delayed, according to the report, depending on the pace of charging infrastructure buildout and whether California retains its ability to set its own emissions standards.

Meanwhile, AlixPartners’ EV forecast for the US market this year “is down 46% from its forecast last year, to a 23% share, due mostly to the changed regulatory environment,” according to the consultancy’s latest global automotive outlook.

Already, signs are mounting that the EV market is cooling off. Cox Automotive’s 

 that EV sales were down 6% YoY in June, and the firm revised downward (from 10% to 9%) its estimate of how much new-vehicle market share EVs would capture this year.

The reports underscore the degree to which China has pulled ahead of the rest of the world on electrification, with BNEF noting that China “is the only country where EVs are on average cheaper to buy than comparable ICE vehicles.” Last year, 69% of EVs sold around the world were made in China.

And nearly two-thirds of 2025’s projected EV sales are expected to come from China, with Europe and the US accounting for 17% and 7%, respectively, per BNEF.

“These sales, paired with an evolving policy landscape in the US, has put adoption in some emerging markets, like Thailand, higher than in the US, challenging the widely held assumption that EVs will start in wealthy countries before spreading further,” per the report.

Such competitive pressures necessitate “wholesale transformation” in the auto industry, AlixPartners concluded. That means being more decisive, embracing new technologies, introducing new operating models, and forgoing “deterministic strategies” and other old ways of doing business, according to Mark Wakefield, AlixPartners’ global automotive market lead.

“The companies have to be agile,” he said in a call with [reporters]. “And to do that, we’re finding that the AI and data layers are really critical.”

Symbols representing electric vehicles and a red baseball hat.

BloombergNEF: US policy changes likely to drag down global EV adoption

BNEF’s EV outlook estimates 14 million fewer passenger EV sales in the US in the coming years.

As the summer heat sets in, the US EV market appears to be cooling off.

 6% YoY, and S&P Global Mobility cited “stalled conditions for BEV demand” in its projection that battery-electric vehicle sales would make up about 7% of the new-vehicle market in June—down from over 8% in January. Meanwhile, numerous major automakers, including US EV market leader Tesla, reported YoY EV sales declines in Q2.

The EV market is likely poised for even more turbulence in the coming months, now that President Donald Trump has signed into law the “Big Beautiful Bill” that 

 the $7,500 federal tax credit for EV purchases beginning Sept. 30.

Meanwhile, the new-vehicle market showed signs of 

 in June after a spring tariff-driven buying frenzy. And analysts have warned of a further decline in the second half of the year, attributed, in part, to tariffs.

“Automakers and consumer[s] alike continue to digest an uneasy and uncertain environment,” Chris Hopson, principal analyst at S&P Global Mobility, said in a statement.

Tesla was a drag on the EV market’s overall results, as the EV maker saw its global deliveries fall 13.5% YoY, even with its attempts to 

General Motors reported 7% YoY sales growth in Q2. The No. 1 US automaker’s EV sales rose more than 100%, and Chevrolet “became the best-selling EV brand,” according to a company press release.

Ford posted a 14.2% YoY sales gain in Q2. The automaker reported that its electrified vehicle sales rose 6.6% in Q2 and made up 13.5% of its overall sales mix. Hybrid sales rose 23.5% YoY, driving the gains, while EV sales fell 31.4%.

Toyota Motor North America’s sales were up 7.2% YoY in Q2. The automaker reported that its electrified vehicle sales were up nearly 30% on a volume basis and made up nearly half of its sales volume.

“Steady demand for our Toyota and Lexus brands resulted in strong sales throughout the second quarter,” Mark Templin, EVP and chief operating officer of TMNA, said in a statement. “Our lineup of 32 electrified vehicles was a big part of that draw as they represented over 46% of our sales in June.”

American Honda’s Q2 sales rose 8.2% YoY. The Honda brand reported record electrified vehicle sales thanks to strong sales of hybrid versions of the CR-V, Accord, and Civic, and of the Prologue EV, per a news release.

Sister brands Hyundai and Kia reported their best-ever first-half results, bolstered by strong hybrid sales, but both brands’ EV sales were down.

Mercedes-Benz’s quarterly results were impacted by tariffs, The Wall Street Journal 

, with the German automaker’s global sales falling 9% YoY and its US sales dropping 12%. Mercedes-Benz’s EV sales fell 24%.

“One of the most pressing headwinds is policy uncertainty,” Stephanie Valdez Streaty, Cox Automotive’s director of industry insights, said during a recent presentation. The “looming expiration” of many of the Inflation Reduction Act’s EV incentives, she added, “could dampen consumer enthusiasm and slow the pace of adoption, especially among price-sensitive buyers.”

An electric vehicle charger resembling a downward market arrow hovering over a charging port

EV market showed signs of slowdown in Q2, led by another Tesla delivery decline

Tesla, the leading US EV maker, saw global deliveries fall 13.5% YoY in the second quarter.

The EV market is in for a “roller coaster ride” in the coming months thanks to a bevy of federal policy changes, according to Cox Automotive Chief Economist Jonathan Smoke. And that’s on top of tariff-driven disruptions that are likely to upend the new-vehicle market in the second half of the year.

“Now we face the risk of cooling demand, as 

 and are unlikely to go lower, while uncertainty for world peace, inflation, interest rates, and the end game for tariffs remains incredibly high,” Smoke said during a presentation Wednesday. “We also have seen steps taken that will lead to a roller coaster ride for EV sales over the next nine months, as policy changes remove tax credits and emission targets are dialed back.”

The anticipation of tariff-induced price increases 

 to lock in new-vehicle purchases, sending sales surging in March and April. Sales 

 of cooling in May—and that’s likely to be the story for the rest of the year.

“The impact of tariffs have not yet been felt, and that will change in the second half of this year,” Charlie Chesbrough, senior economist at Cox, said. “We expect the sales pace to slow as fewer summer buyers remain after a frenzied spring, and the high prices and tight inventory grows as a headwind in the fall.”

 that the Trump administration’s trade policies, particularly 25% tariffs on imported vehicles that went into effect in April, are likely to lead to 

Cox’s June forecast estimates a seasonally adjusted annual rate of 15.3 million sales, down from 15.6 million in May and 17.5 million in March and April. Q2 sales are expected to be 1.7% higher YoY, but June sales are estimated to be down more than 6% YoY.

Cox’s baseline forecast now calls for 15.7 million sales this year, down from last year’s 15.9 million and its 

Cox now expects EVs to make up 9% of the new-vehicle sales, down from its previous estimate of 10%. Preliminary Q2 numbers suggest that EV sales were down 6% YoY, largely due to Tesla’s 

“One of the most pressing headwinds is policy uncertainty. The Inflation Reduction Act has played a pivotal role in accelerating EV adoption, particularly through tax credits and leasing incentives,” Stephanie Valdez Streaty, Cox’s director of industry insights, said. “However, many of these benefits are set to phase out or become more restrictive in the coming years. This looming expiration could dampen consumer enthusiasm and slow the pace of adoption, especially among price-sensitive buyers.”

Also significant for the EV sector: Republican lawmakers’ 

 to California’s ability to set its own emissions standards. Valdez Streaty said that if California loses this authority, it’ll have major implications for automakers that have made product plans around the state’s more aggressive EV targets.

Despite these challenges, Valdez Streaty pointed to a silver lining: a new wave of EV models hitting the market. In 2020, she noted, there were only 17 models. There are now 75, with more on the way.

“While this growing diversity is a clear sign of market maturity and a win for consumers, offering more choices across price points and lifestyles, it also presents challenges for automakers,” she said. “Ramping up production across so many models can strain supply chains and delay profitability. Even so, the broader takeaway remains positive: More consumers than ever can now find an EV that fits their lifestyle, budget, and brand preference.”

An EV charger next to the Republican elephant

Cox analysts: EV market in for ‘roller coaster ride’ amid federal policy changes

Uncertainty around federal policy is throwing a wrench into the EV market’s momentum.

 that it would build the first automaker-backed lithium iron phosphate EV battery plant in the US was touted as an example of the Inflation Reduction Act’s success.

 amid wrangling over the federal budget in the Republican-controlled Congress. And a House version of the controversial budget bill 

 credits for batteries that use Chinese tech—Ford’s exact model for the plant, per a licensing agreement with Chinese battery giant CATL.

But Ford executives say the company is staying the course on its $3 billion BlueOval Battery Park Michigan, which is now more than halfway complete—even as the project stands to lose major 

, namely the IRA’s 45X Advanced Manufacturing Production Tax Credit, which subsidizes investments in domestic battery manufacturing and could represent hundreds of millions of dollars in tax credits for Ford.

“When we invest, we stick behind our investments,” Lisa Drake, Ford’s VP of technology platform programs and EV systems, told reporters this week during a tour of the Marshall, Michigan, site. “Ford is a company that will weather the storm until we get there. But there’s a great opportunity to help not only Ford, but all of the auto sector stay in this game and keep these battery jobs here. Now it’s going to just be up to the administration.”

Ford's BlueOval Battery Park in Marshall, Michigan.

Ford broke ground on the plant in early 2023, and is slated to start production on prismatic LFP battery cells and packs next year. The automaker will soon start installing the equipment, now en route from China. Drake confirmed Ford had to pay tariffs on the equipment.

“It’s a long-term play,” she said. “Even with 

, this is still the right thing to do.”

Ford plans to have about 1,700 employees at the plant, which spans 2 million square feet and will have an annual production capacity of 20 gigawatt hours.

Ford is now producing C-sample cells—the final prototype versions—at an offsite “equipment supplier location” and will soon use them for “design-confirmation sign-off in our next-generation electric vehicle program,” according to Drake.

Ford aims to have three battery chemistries in its EV portfolio: nickel manganese cobalt, or NCM, today’s dominant chemistry; LFP, the cheapest option; and the 

The automaker has three other battery plants in the US: two in Kentucky and one in Tennessee, all joint ventures with South Korean battery maker SK On, and all focused on NCM.

Drake said that Ford leaders faced a choice on LFP: continue to pour resources into R&D or license the tech and bring it to market faster.

“It probably would have taken us a decade to catch up and have LFP technology on our own with our own R&D,” she said. “We didn’t have time. And that’s not where you want to spend the investment. If Ford has capital, we want to spend our investment creating the manufacturing jobs here.”

Under its licensing agreement with CATL, Ford controls the equipment, plant, and workforce; CATL employees will train BlueOval Battery Park workers on the equipment.

Though the policy landscape has shifted dramatically, Drake said Ford executives still see this as the right choice, in part because it gives the company more control over its supply chain—but they’re still lobbying for federal support.

“When EV adoption slowed, it just became a huge headwind to us. It’s going to pick up; we believe we’ll ultimately be there by the end of the decade” she said. “In this interim period where that adoption slowed, but we still made this big capital investment, the [production tax credit] will allow us to keep on that path and keep going.”

Workers inside Ford's BlueOval Battery Park in Marshall, Michigan.