President Biden’s administration is rolling back strict the EPA rules that would have required US automakers to prioritise electric vehicles by 2032.
Industry pressure has led to more time for reducing EV costs and expanding charging infrastructure.
Labor leaders influenced the decision, seeking an extension for union membership in new US EV plants.
The shift comes amid challenges in meeting the original EPA requirements, with slowed EV sales and industry focus on larger electric vehicles exceeding the current supply chain’s capabilities.
The initial EPA mandates aimed for electric vehicles to constitute 67 percent of new light-duty vehicle sales and 46 percent of new medium-duty sales by 2032.
This marked a significant increase from the 7.6 percent reported last year.
However, the adoption of electric vehicles has decelerated, making the target more challenging to achieve.
One major obstacle is the auto industry’s emphasis on large electric trucks and SUVs, creating a strain on the supply chain, which is not currently equipped to handle these vehicles cost-effectively.
