On Friday, Slate unveiled its new electric truck priced just below $25,000, making it America's cheapest EV. This development highlights how Donald Trump's policies and China's advancements in battery technology have reshaped the electric vehicle landscape.
Trump's Impact on Electric Vehicle Affordability
In 2022, a climate law was passed by Congress, offering a tax credit of up to $7,500 for new EV buyers. However, to qualify, manufacturers had to use batteries assembled in the US with materials sourced from allied nations. This legislation initially deterred the use of lithium iron phosphate (LFP) batteries, a technology that was perfected in China.
Due to these restrictions, companies like Slate were forced to pivot their strategies. Bob Lee, president of LG Energy Solution in North America, stated, “The industry’s pivot to more affordable batteries is partly due to market forces and what consumers are requesting, as well as some of the regulatory and policy changes with the Trump administration.”
The Rise of LFP Batteries in America
Despite the US being a pioneer in battery applications since the 1960s, the focus shifted away from LFP technology for over a decade. However, Chinese manufacturers like BYD and CATL embraced LFP chemistry for its cost-effectiveness and stability, leading to a significant supply chain being established in China.
