EV Benefits and Impacts

Emissions Benefits

Electric vehicles (EVs) significantly cut down on greenhouse gas emissions (GHG) compared to ICE vehicles, including the full lifecycle from battery production through use and end of life.

• Driving an EV reduces tailpipe and greenhouse gas emissions by over half compared to an ICE vehicle. 

• As the electric grid becomes cleaner over time, an EV purchased today will be responsible for fewer and fewer emissions the longer it is operated.

EVs and the Electric Grid

• Beneficially integrating EVs and the electrical grid can provide benefits to EV drivers, rate payers and the environment, while still meeting EV driver needs.
• Vehicle grid integration (VGI) can reduce costs and environmental impacts
  • Reduced electricity costs through better utilization of grid assets
  • Reduced curtailment of renewable energy
  • Reduced use of diesel generators or separate stationary storage units
• EVs have contributed downward pressure on electric rates for EV owners and non-EV owners alike by increasing utility revenues more than they have increased utility costs. Specifically, between 2011 and 2021, EV drivers contributed $3.12 billion more in revenues than associated costs. Shifting EV charging away from utility system peak can help ensure EVs are beneficial to the grid.
• EVs can provide a range of grid services such as shifting load to accommodate grid constraints and back-up generation in emergency situations, reducing the need for costly grid upgrades as well as diesel generators or separate stationary storage units.
  • For example, one electric school bus can store enough power to power the equivalent of five operating rooms for more than eight hours and a single operating room for 43 hours.
  • Bidirectional charging (vehicle to everything, V2X) could benefit homes and communities that lose power following extreme weather events.
  • Grid-connected EVs could pay drivers for the grid benefits of their vehicle. A typical passenger vehicle is on the road only 4-5% of the day spending ~95% of the time sitting unoccupied in parking lots, garages, or near buildings with power.
• J.D. Power’s U.S. Electric Vehicle Experience Home Charging Study indicated that 74% of BEV owners are interested in bidirectional V2X options.

EVs and Battery Manufacturing

U.S. manufacturers could supply around 10 million new electric vehicles each year by 2030.

• Since January 2020, there has been over $200 billion invested in EV and Battery manufacturing in the United States
• With this investment, the U.S. will have manufacturing capacity to produce battery cells to supply at least 10 million EVs — more than half the number of light-duty vehicles manufactured in North America each year.
• These investments span over 350 new or expanded minerals, materials processing, and manufacturing facilities for batteries, for approximately 100,000 potential new jobs, and over 200 new or expanded sites for EV assembly and component or charger manufacturing — 70,000+ potential new jobs
• The U.S. auto industry added 250,000 jobs, with clean transportation jobs having a growing share.
• Learn more from the U.S. Department of Energy about private-sector investments in EVs and EV battery manufacturing in the United States.