Steel Markets
April 9, 2021
What Does the Trend Toward Electric Vehicles Mean for Steel?
Written by Tim Triplett
Given the heightened urgency to reduce carbon emissions and address climate change, nearly all the world’s automakers plan to replace at least some of the internal combustion cars and trucks in their lineups with fully electric vehicles (EVs). GM, notably, has pledged to introduce 30 new EVs by 2025 and to produce nothing but EVs by 2035. The Biden administration’s infrastructure spending plan unveiled April 1 includes $174 billion in incentives for electrification of the transportation sector, including funding for 500,000 vehicle charging stations. By some estimates, EV sales could approach 27 million worldwide by 2030 from less than 4 million today, an annual growth rate of more than 20%. So, what does that mean for steel?
Steel industry experts see the trend toward EVs as a positive one for steel consumption. “We are excited. We think there is a strong case to be made for steel in electric vehicles,” said John Catterall, vice president of the automotive program for the American Iron and Steel Institute.
