A Michigan State University expert says electric vehicle production in the U.S. is likely to slow in 2025.
Amy Broglin-Peterson, a faculty member in MSU’s Supply Chain Management department, said automakers have already started scaling back EV plans and investments due to slowing sales.
She referenced recent developments at the Ultium Cells battery plant in Lansing as a sign of shifting priorities.
“We've seen General Motors pull out of the Lansing battery plant and joint venture that it had with LG,” she said. ”We've seen other automakers stepping back and pausing. Ford Motor Company’s done some similar things.”
GM announced earlier this month that it’s selling back its stake in the battery plant to LG. The automaker said it will rely on its joint venture factories in Ohio and Tennessee to supply factories that make seven electric vehicles now on sale in the U.S.
It’s unclear when the Ultium Cells plant will officially begin full production in Lansing.
Broglin-Peterson adds that the incoming Trump administration is another factor automakers are taking into account.
President-elect Donald Trump has said he wants to eliminate federal EV tax credits for consumers, worth up to $7,500. But Brogin-Peterson said that doesn’t mean EVs are going away.
“I think there will be movement to continue with some plans for electric vehicles, because this administration is only going to be in place for four years, and who knows what time will bring. I don't think anybody is going to sit back on their heels entirely,” she said.
Still, Broglin-Peterson says she expects automakers to take a more cautious approach toward EV production over the next few months.
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