US to Have 67% of New Cars as Electric Vehicles by 2032... New Variables for Battery and Auto Industries

Carbon Emissions Reduced by 56%... White House "Will Cut 10 Billion Tons by 2055"

The Joe Biden administration in the United States has significantly strengthened the carbon emission standards for automobiles, aiming to convert 67% of new cars sold in the U.S. to electric vehicles by 2032. This is considered the most aggressive measure taken so far by the Biden administration to address climate change. It is expected to become a new variable for the global automotive industry, including South Korea.

[Image source=Reuters Yonhap News]

On the 12th (local time), the U.S. Environmental Protection Agency (EPA) announced a new proposal to tighten carbon emission regulations, stating that it will finalize the rules after gathering opinions from various sectors. The regulation targets passenger cars and light trucks from model years 2027 to 2032, strictly limiting allowable emissions of carbon dioxide (CO₂), nitrogen oxides (NOx), and particulate matter. Accordingly, the average allowable CO₂ emissions for 2032 model year vehicles are set at 82 grams per mile, a 56% reduction compared to 2026 levels.

The Biden administration plans to convert 67% of all new car sales in the U.S. to electric vehicles by 2032 through this measure. For the automotive industry, meeting the strengthened emission regulations means significantly increasing the sales proportion of electric vehicles instead of internal combustion engine vehicles, effectively making this a mandatory measure. This target is much more ambitious than the administration’s previous pledge to convert 50% of new car sales to electric vehicles by 2030. Last year, electric vehicles accounted for only 5.8% of new car sales in the U.S., with the first quarter of this year seeing a 7.2% share.

Going forward, the EPA plans to apply even stricter emission standards to medium and heavy trucks. By 2032, about 50% of buses and medium trucks will be converted to electric vehicles. Additionally, new durability and quality warranty standards for electric vehicle batteries were introduced. These require maintaining 80% of the original battery performance for 5 years or 62,000 miles of driving, and 70% for 8 years or 100,000 miles.

The White House described this as "new vehicle emission standards to make all vehicles environmentally friendly and efficient," estimating that if the regulation is finalized, it could reduce carbon emissions by approximately 10 billion tons by 2055. This amount is more than twice the total carbon emissions of the U.S. last year. Other expected benefits include reducing U.S. dependence on oil imports. Michael Regan, EPA Administrator, called it "the most ambitious standards ever for cars and trucks," adding that it will "reduce air and climate pollution and lower fuel and vehicle maintenance costs for households." Major foreign media reported that "since the only way to meet the standards is through electric vehicles, the transition to electric vehicles will accelerate."

This proposal aligns with the Biden administration’s recent policies to accelerate electric vehicle adoption through the Inflation Reduction Act (IRA) and the Infrastructure Act, which provide tax credit benefits exclusively for North American-made electric vehicles.

However, the automotive industry has criticized these electric vehicle transition goals as somewhat unrealistic, pointing out that the infrastructure, such as electric vehicle charging stations, is insufficient and that the targets are too aggressive. John Bozzella, CEO of the Alliance for Automotive Innovation representing manufacturers like Ford and General Motors, expressed concern, saying, "It is aggressive by any measure," and "It entirely depends on having the right policies and market conditions." South Korean companies such as Hyundai Motor and Kia also face increased burdens to meet the new U.S. regulations following the IRA. Previously, Hyundai and Kia announced their U.S. electric vehicle sales targets for 2030 at 58% and 47%, respectively.

Consumer perceptions surrounding the electric vehicle transition may also pose obstacles. According to a public opinion survey released on the same day by the Associated Press and the University of Chicago’s National Opinion Research Center (NORC), only 19% of U.S. adults said they are "very likely" to purchase an electric vehicle the next time they buy a car. Another 22% said it was "somewhat likely." In contrast, 47% responded that they are unlikely to purchase an electric vehicle, nearly half of the respondents. The reasons for not preferring electric vehicles included high prices, lack of charging stations, and a preference for gasoline vehicles.

This content was produced with the assistance of AI translation services.