US Battery Makers Gave Up Way Too Soon On EV Sales

The article discusses the premature expiration of the $7,500 federal tax credit for electric vehicles (EVs) in the U.S. last September and its significant negative impact on domestic EV sales. While industry observers initially expected a sharp decline, a subsequent geopolitical conflict initiated by President Trump against Iran caused a spike in gas prices, which could have motivated more EV purchases. However, U.S. automakers and battery manufacturers had already scaled back their electrification plans, dampening potential growth. Global EV sales data for January 2026 showed a 6% year-over-year decline, primarily due to the U.S. and China rolling back EV incentives, whereas EV sales excluding these markets actually rose by 36%. The article highlights that the U.S. political landscape, with Trump’s re-election and a Republican-controlled Congress, led to the tax credit’s expiration being set for September 30, 2025, disrupting long-term industry plans. Automakers like Ford and GM have adjusted production downward, and