As a major automotive market and a leader in technological innovation, the United States' new energy vehicle industry and supply chain attract worldwide attention.
In the first half of 2025 the US EV market was strong early and weaker later: overall sales hit a record, but a year-on-year decline in the second quarter revealed the pressures of a maturing market.
Hybrids continued to grow, while growth in battery electric and plug-in hybrid models slowed. Changes to federal tax incentives have become a key factor in consumer decisions and add uncertainty to the second half.
In the first half the US sold 607,089 EVs, up 1.5% from the first half of 2024. Second-quarter sales were 310,839, down 6.3%, one of the few quarterly declines on record, partly because the federal tax credit is due to expire in September.
Industrial policy has encouraged automakers to invest more in EV R&D and production, and subsidies and incentives have attracted many companies to build EV and battery plants in the US. Tesla's Gigafactory in Nevada, for example, has created many local jobs and strengthened the US EV supply chain.
Traditional automakers are also expanding into EVs. General Motors has said it will stop selling combustion vehicles by 2035, and Ford has launched several EV models such as the Mustang Mach-E.
The US market also faces challenges. EVs remain relatively expensive, and even with tax credits some consumers feel the cost; and charging infrastructure is still incomplete, with low coverage in remote areas limiting adoption.
The US EV supply chain covers upstream raw materials, midstream components and downstream vehicle production and after-sales service. Lithium, cobalt and nickel are key battery materials; although the US has some mineral resources, it still relies heavily on imports, and government and industry are investing more in domestic mining and recycling to secure supply.
In midstream components, the US has a number of technically advanced companies. Battery makers such as LG Chem and Samsung SDI have plants in the US supplying American EV makers, and the US has technical strengths in motors and power electronics.
Downstream, Tesla's success has driven the US EV industry, and more companies are entering EV manufacturing, increasing competition and innovation. Compared with China and Europe, however, the US still lags in scaled production and cost control.
In core technology the US has made progress in batteries and autonomous driving but still faces challenges: battery energy density, safety and cost remain key constraints, and commercial autonomous driving faces legal, regulatory and safety hurdles.
Chinese companies are active in the US: CATL licenses technology to Ford for LFP batteries at its Michigan plant and to Tesla for its Nevada plant, while gradually building its own production; Envision AESC supplies batteries to Mercedes-Benz's US plant and is building a gigafactory; Great Wall has worked with FF on vehicle production; and Chinese materials companies such as Wanrun New Energy are preparing US plants.
INFOR has been very active in the US market. Besides exhibiting frequently at US shows, we have established cooperation with local companies and research institutions, and our US office is being set up to bring Chinese bead mill technology and service to the US market.
Driven by policy, the US EV industry and supply chain have made progress but face market, technology and infrastructure challenges. To achieve sustainable growth and a strong position in the global market, the US will need to strengthen its supply chain, overcome core technology bottlenecks and deepen international cooperation.