The auto industry is already on its way.
Dozens of new electric models of cars, SUVs and trucks with ranges over 250 miles will be available by 2023, with more than 100 EV models by 2025. Many of those new models will be made here in Michigan.
Collectively, the auto industry has announced investments of more than $175 billion in the U.S. and $677 billion globally for the development of new EVs--with additional announcements continuing almost weekly.
Leading automakers--including the Detroit Big 3--have now committed to all-electric line-ups between 2030 and 2040, with a few even earlier (including Stellantis N. America, Volvo, Maserati and all-electric brands like Rivian, Lucid and Tesla.)
Adopting a 2030 target date for 100% EV sales would show that Michigan is serious about being a market leader, and would support the auto industry’s recent investments and ambitions.
Global policies are moving toward electrification.
It's no surprise that China and the European Union are currently the EV market leaders, given phase out plans for new gas cars and a range of supporting policies.
Norway, for example, has already achieved an EV market share of more than 95% of new vehicle sales. This is largely the result of consistent policy support, including tax incentives, charging infrastructure deployment and other policies.
Michigan has been making progress.
Michigan has made important strides toward an electric vehicle future in the past few years, setting the foundation for becoming a national EV leader.
State leaders created a new Office for Future Mobility and Electrification (OFME), created a Future Mobility Fund, and passed the SOAR Act providing incentives that have recently attracted two major investments in EV and EV battery manufacturing in the state.
The Michigan Public Service Commission, Department of Environment Great Lakes and Energy (EGLE), and Michigan’s utility companies launched programs supporting the development of an EV charging network across the state and assisting residential and commercial customers with EV charging installations.
The recently adopted MI Healthy Climate Plan and report from the Council for Future Mobility and Electrification (CFME) both included recommendations that called for building the infrastructure needed to support 2 million vehicles on MI’s roads by 2030. The reports also included recommendations for many of the needed policies to accelerate Michigan’s transition to EVs, including EV purchase incentives, deployment of EV charging stations, and local EV readiness policies.
Michigan can now build on this progress by establishing a clear goal and committing to a comprehensive transition plan.
Based on the experience of other leading states and countries, the development of clear targets and plans, along with the right mix of supporting policies, is the key to success.
Key provisions of a comprehensive plan or roadmap to support 100% EV sales and 2 million EVs on Michigan’s roads by 2030 should, at a minimum, identify what will be needed in the following areas:
- Investments to equitably deploy EV charging infrastructure across MI communities
- Purchase incentives to help offset the higher up-front cost of EVs, especially for low and moderate income vehicle buyers
- Job transition and retraining programs to ensure MI’s workforce is ready
- Incentive programs for recruiting/maintaining EV manufacturing and R&D, and assisting MI's auto communities with a just transition
- Conversion of the State of Michigan and local government vehicle fleets to EVs
- An equitable replacement for EV registration fees to support road maintenance
- EV Readiness policies for local governments
- Public Education and outreach
- Battery safety and recycling standards