By Casey Horan
Recently, a friend sought my help in finding a zero-emission upgrade for his old gas-guzzler. Incentivized by increased cost-competitiveness and a desire to be more environmentally conscious, he was eager to see the new zero-emission vehicle models. To our dismay, dealer after dealer informed us that, not only was the supply for all new ZEVs backed up for months, but prices had increased significantly. Why? Every dealer cited supply chain issues.
A global shortage of chips — tiny semiconductors that make all our electronics work — has forced automakers to delay or halt production for all new vehicles, including ZEVs. While this specific disruption will not impact the long-term market adoption of ZEVs, it does underscore the need to boost domestic manufacturing. The U.S. must not allow an overreliance on foreign suppliers for ZEV components to impede our ability to meet transportation electrification targets, including for medium- and heavy-duty ZEVs, which are a critical part of plans to reduce emissions and address public health and equity concerns across the nation.
To prevent further market instability and delay, Congress should pass the Build Back Better Act and states must implement coordinated policies to encourage investment in domestic supply of essential ZEV parts.
