Pennsylvania is a leading state in the National Electric Vehicle Infrastructure program, with nearly $77 million in federal funding backing 90 public/private projects to build out charging stations along major routes across the state. (Adobe Stock)
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By Danielle Smith
Aug 24, 2025
A new report said federal policy is making it difficult for the U.S. electric vehicle industry to compete with China.
Research from the nonpartisan American Security Project found globally, China now produces 70% of EVs and 80% of EV batteries. The “One Big, Beautiful Bill Act” signed by President Donald Trump last month rolls back Biden-era EV tax credits and experts warned the move could stall sales and hit Pennsylvania hard.
Katherine Yusko, research analyst at the project and the report’s lead author, said the cuts threaten the nation’s economic growth and progress on climate change.
“The international market is beginning to demand more and more electric vehicles,” Yusko pointed out. “If the U.S. doesn’t keep up on EV innovation and production, it’s going to see enormous lost profits, lost global influence, and will essentially hand over these enormous strategic assets to China.”
Pennsylvania now has more than 70,000 registered electric vehicles. Under Trump’s budget bill, Biden-era federal EV tax credits will end Sept. 30. Yusko warned ending the credits will weaken demand in the U.S. and give China a bigger share of the global auto market. Pennsylvania’s EV industry has drawn $284 million in private investment, boosted by about $187 million in federal funding.
Yusko argued it is important for the U.S. to boost production and invest in next-generation solid-state batteries for EVs, which are nearing commercialization.
“These batteries are expected to serve about 20% to 30% of the EV battery market in the coming years,” Yusko noted. “Which is a big chunk that the U.S. can take advantage of if it invests its resources in battery innovation.”
She added EV battery manufacturing in the U.S. has doubled in recent years, largely due to incentives in the Inflation Reduction Act. Chinese electric vehicle maker BYD recently eclipsed Tesla as the top-selling EV company in the world.