By Trilby MacDonald, Ecology Center Writer
Electric vehicles (EVs) are at a crossroads. They cut pollution, save drivers money, and are the fastest growing segment of the automotive industry. Most domestic EVs are built right here in Michigan, but in just 15 years, government support helped China dominate a market the U.S. invented. Lack of supportive Federal policies have sent manufacturing jobs overseas when they could stay in Michigan.
The stakes are high. Transportation is the single biggest source of greenhouse gas emissions, and the Detroit metro area has some of the dirtiest air in the nation, costing billions in lost productivity each year. EVs offer a solution: They help clear the air and save drivers hundreds of dollars a year on gas and maintenance. But upfront costs, hidden fees, and range anxiety prevent many people from making the switch.
Right now, short sighted policies are steering us away from the EV market instead of towards it. If lawmakers invest in EV incentives they can spark job growth, keep Michigan competitive, and make clean, reliable cars affordable for more Americans.
Federal Policy Whiplash: From Support to Rollback
Thanks in part to the $7,500 federal EV tax credit, the number of EVs and plug-in hybrids (PEVs) on U.S. roads grew from 2.1 million in 2021 to 6.2 million in 2025, according to the Alliance for Automotive Innovation’s Q1 2025 report. Domestic growth lags far behind the rest of the world, however, with sales increasing only 6% so far in 2025 compared to the global growth of 25%. Even with the tax credit ending, though, EVs remain cost-effective. According to the Department of Energy, EV drivers can save up to $2,200 annually with an EV compared to a gas vehicle. So why aren’t more Americans buying EVs?
Concerns about charging remain one of the biggest barriers. Many would-be EV drivers hesitate to go electric because existing fast chargers are hard to find and often unreliable, with some failing to deliver their advertised charge rate — or not working at all. Michigan has just over 3,300 public chargers but a recent study by Michigan State University estimates the state needs 66,000 to support the roughly 85,000 EVs currently on the roads and meet future demand.
The good news is that public and private investment is beginning to address these gaps. The National Electric Vehicle Infrastructure (NEVI) Formula Program and Michigan’s Charge Up Michigan program will add more than 250 new fast chargers statewide by 2030. Private companies such as Mercedes-Benz, IONNA, and Walmart are also racing to meet demand, with plans to install tens of thousands of fast chargers across the country.
Even as the charging network expands, Michigan’s EV market faces strong national headwinds, with shifting policies and regulatory setbacks threatening to blow it off course. The end of the federal tax credit could reduce national EV demand by as many as 8 million vehicles by 2030, according to Princeton’s Net Zero America analysis. The anticipated sales slump is already making U.S. automakers less likely to invest in the next generation of battery technology that would increase driving range. EV sales here lag the U.S. average, with just 3.2% of new-car sales compared to 8% nationally.
Politics plays a role. EVs have been cast by opponents as a symbol of liberal entitlement, supposedly out of touch with the needs of working families. There is a grain of truth: While EVs save drivers thousands of dollars over time, up-front costs make them unaffordable for average households. But this reality is being worsened — not solved — by federal decisions to remove purchase incentives for new and used EVs and roll back clean air rules. Repealing the EPA’s 2009 “Endangerment Finding,” for example, would strip the agency’s authority to regulate vehicle greenhouse gas emissions under the Clean Air Act, clearing the way for more gas-guzzling SUVs and trucks.
Automakers are already adjusting course: GM scaled back plans to produce EV pickups in Orion Township, and is now retooling the plant for traditional SUVs. Ford has scaled back and delayed EV production plans as well, but is now committing to a more affordable product mix and manufacturing process intended to compete with the Chinese. Stellantis also canceled its all-electric pickup 1500, but will instead produce an extended range electric vehicle with gasoline engine that can be used solely to recharge the battery — something that many consumers have been demanding to address range and re-charging limitations, particularly when towing. While these set-backs are disappointing, they were no-doubt needed to re-align automaker product offerings with consumer demand.
These challenges make Michigan’s role more urgent. State policy, local innovation, and public demand are essential to help keep the EV market strong and support Michigan’s auto industry to compete in the global race for clean mobility.
Michigan Automakers Reach a Fork in the Road
Even though Michigan automakers like Ford are currently losing money on EVs, they know that walking away from EVs now would mean missing out on big profits later. It takes time and money to develop a new technology. That’s why government support is so important. The U.S. government was a major investor in the early days of the auto industry, helping to create millions of good jobs. The Chinese government jump started EV production and today, China sells four times as many EVs and batteries than the U.S. Electric vehicles are becoming more popular all over the world, and cleaner air will lower healthcare costs and make life better for everyone. Michigan has always been a leader in making cars, and it should have a bigger role in producing the cars of the future.
Michigan has already generated 26,000 new clean energy jobs since 2022, many of them in the automotive sector. Global demand continues ramping up, and Michigan needs to do everything it can to keep jobs and profits here. With the right policies, Michigan’s EV industry can deliver tens of thousands of additional high-paying jobs, cleaner air, and lower costs for families—ensuring Michigan remains a driving force in the world’s mobility future.
The One Big Beautiful Bill Act (OBBBA) and Michigan’s Mobility Future
In one fell swoop, the OBBBA is managing to reverse years of work to transition the American economy to renewable energy and electric vehicles—and Michigan stands to lose the most. By abruptly ending key federal EV incentives and introducing new tariffs, the law will significantly raise EV prices and slow demand, derailing the state’s ambitious production goals. Michigan’s efforts to meet untapped demand already face buyer uncertainty and better incentives in other states. Throw in possible rollbacks of EPA authority needed to enforce clean air policies, and our chances of competing are slim. More than half of Michigan’s planned EV manufacturing projects have been delayed or canceled in the past two years, costing us thousands of jobs and billions in investments.
While the NEVI program was reinstated after legal challenges, Michigan must now compete even harder for funds amid fierce political opposition to infrastructure spending. Meanwhile, potential hikes to EV registration fees as part of road funding reforms could make Michigan even less attractive to investors. Lawmakers need to take bold action to protect incentives, build chargers, and ensure road funding fees do not penalize EVs. It would be profoundly ironic if Michigan drivers couldn’t reliably use EVs built by their own automakers because state policymakers failed to lead. Michigan’s legacy in the auto industry gives it the foundation to lead this transition, but it must seize the opportunity to make more EVs here and keep its economy moving forward.
Ecology Center Prioritizes Michigan’s Clean Mobility Future
We see the need for new policies in three key areas: increasing opportunities to charge EVs, reducing the cost to buy and own an EV, and creating new ways for EVs to support the electric grid
First, we’re working to expand access to charging — especially in apartments, rural areas, and other places with limited options — by pushing for laws that require charging stations in new buildings and supporting utility plans that increase charging infrastructure.
Second, we’re advocating for lower costs for EV owners by championing state and utility incentives, promoting affordable financing, and opposing unfair road user fees or taxes that make EV ownership more expensive.
Third, we’re advancing policies that allow EVs to act as a grid resource, either by shifting their charging away from times of heavy use or sending power back to the grid. In this way, EVs can also help to support the broader transition to reliable and clean energy for Michigan.
Through these efforts, the Ecology Center and its allies are making it easier and more affordable for working families to choose and benefit from electric vehicles.