Certainly, the Trump presidency did have some implications on the growth of electric vehicles (EV) and the expansion of the battery supply chain. A few key factors to consider include:
1. Reduced Support for Clean Energy: Unlike the previous government, the Trump administration did not seem to prioritize clean energy or EVs. They attempted to eliminate the EV tax credit, though it ultimately was not repealed. However, these kind of actions could have created an environment of uncertainty that might have affected the growth of the EV market.
2. Rollback of Fuel Efficiency Standards: In 2020, the Trump administration rolled back fuel efficiency standards set by the Obama administration. This could have indirectly affected the EV market since one of the selling points of EVs is their fuel efficiency. By lowering the standards, traditional gas-powered cars become more competitive against EVs.
3. Trade Tensions: This arguably had the biggest effect on the battery supply chain. The trade war with China led to increased tariffs on imported goods – including key components for lithium-ion batteries (which power EVs). The tariff on Chinese lithium went from zero to 25 percent. This increased costs for EV and battery makers, and possibly slowed the expansion of the supply chain, given China’s prominent role in it.
4. Strained Relationship with Climate Allies: The Trump administration’s stance towards global warming and clean energy has been controversial. Amongst the actions that strained such relations include pulling out of the Paris Agreement. These relationships are crucial not just for sharing technology advancements but also for creating an international battery supply chain.
5. Lack of Infrastructure Investment: There appeared to be limited federal investment towards charging infrastructure during Trump’s tenure. The lack of a robust charging network is one of the main barriers to EV adoption, so this could have been a significant roadblock to growth as well.
In summary, the Trump presidency did pose challenges to EV growth and the battery supply chain, mostly due to the administration’s policy priorities, trade policies, and lack of support for clean energy infrastructure. Future developments, however, hugely depend on the policies of the subsequent administrations.