INTERVIEW: New US policy should boost EV adoption: ZETA

Policy proposals from President-elect Joe Biden on the energy transition will likely accelerate the adoption of electric vehicles, executive director of the US Zero Emission Transport Association, Joseph Britton, told S&P Global Platts in an interview Dec. 2.

ZETA was launched Nov. 17 by 28 businesses in the US to advocate national policies that will enable 100% electric vehicle sales throughout the light-, medium-, and heavy-duty sectors by 2030.

Britton said that from a political standpoint, both main political parties can see benefits from any energy transition to EVs.

"Republicans and Democrats have a strong interest in advancing domestic manufacturing, job creation, [alongside] American innovation and competitiveness. If we can do that, and also save consumers money on fuel and maintenance costs, while reducing pollution and carbon emissions, then absolutely everyone is better off," he said.

He noted that the incoming administration has pledged to deploy hundreds of thousands of EV chargers, electrify the federal vehicle fleet and send strong market signals to demand emissions reductions -- each of which would accelerate the transition to EVs and help the US lead in the clean transportation race.

China took the lead in the EV race, but is quickly being caught up by Europe. The US is seen as the laggard, although there is now seemingly hope for a turnaround in the race to net-zero.

"We know that embracing an accelerated transition to electric vehicles will create jobs in every single congressional district and can help reestablish a strong domestic manufacturing base here in the United States. That is something everyone can get behind and should want to make a reality for their community," Britton said.

Localized supply chains have been thrust into the limelight in the wake of the coronavirus pandemic as countries look to lower their carbon footprint. Britton highlighted another boon as, "creating an ecosystem of domestic manufacturing is enormously helpful for job creation and anchors these jobs in local communities all across the country."

US unemployment still high

The US was hit hard by the pandemic, with employment punished as the country went into a nationwide lockdown.

According to the US Bureau of Labor Statistics The US unemployment rate dropped to 6.9% in October 2020, from 7.9% in September, and compared with market expectations of 7.7%, as the number of unemployed fell by 1.5 million to 11.1 million and the employment rose by 2.2 million to 149.8 million. Still, the jobless rate remained well above pre-pandemic levels of about 3.5%, as the labor market recovery from the shock of the pandemic showed signs of slowing due to a lack of fiscal stimulus and spiraling new coronavirus infections.

"The transition to EVs is happening and those that are working to get ahead of it will be rewarded with dramatic economic benefits and job growth. The choice is really between shaping policy to cultivate a strong domestic electric vehicle sector or to instead cede this economic opportunity to foreign commercial interests," Britton added.

The 28 founding members of ZETA include Albemarle, Copper Development Association, Piedmont Lithium, Tesla, Volta and Uber.

The association is calling for five key policy pillars to put the US on the pathway to full EV adoption by 2030, including outcome-driven consumer EV incentives; emission targets enabling full electrifications by 2030; infrastructure investments; domestic manufacturing; and federal leadership and cooperation with sub-national entities.