President Trump began his term in office signing a barrage of executive orders, many of which indicate how he intends to shape the EV & battery industry during his term in office. The number of executive orders shows the radical change many players have been expecting from the Trump Presidency. Key points include reversing many Biden era policies, favouring of “America First” strategies and shifting the country’s energy focus back to fossil fuels.  

What do the executive orders cover about the EV industry?

Under the order “Unleashing American Energy”, the administration’s stance includes its aim to “eliminate the electric vehicle mandate” and promote consumer choice. This will be done by:

  • Terminating state emissions waivers that restrict sales of ICE vehicles. This is in reference to California’s 2035 ICE vehicle ban, that 16 other states have also historically adopted, to aid decarbonisation of vehicle fleets
  • Reviewing the removal of subsidies and market distortions that unfairly favour EVs. This is likely in reference to the EV tax credit, where US consumers can receive up to USD7,500 dollars off the price of an EV.

As well as this, President Trump repealed a 2021 Biden executive order that laid out plans to purchase clean and zero-emissions vehicles for “Federal, State, local, and Tribal government fleets, including vehicles of the United States Postal Service.”  The repeal of this executive order also confirms plans to remove the US from the 2015 Paris Agreement and reverses many other Biden era climate change policies.

Notably, the executive orders exclude any mention of the EPA emission standards, something many had speculated Trump intends to reverse.

Key read: Over 17 million EVs sold in 2024 – Record Year

Will the battery and recycling industries lose federal support under Trump?

Plans were also put in place to immediately pause all funding appropriated through the IRA and the Infrastructure Investment and Jobs Act, primarily impacting loans and grants, not tax credits. These acts have been key in facilitating the growth and development of the EV, battery and recycling industries in the US. Since signed into law the IRA has allowed over USD110 billion worth of investments to flow into the US.

While many players have already scaled facilities or are in the process of scaling much of the available funding has already been allocated, reducing the effect of this pause for some. However, for others, especially recycling players, the termination of this funding will be a painful reality.

While the EV, battery and recycling industries have already lost some federal support through the IRA, there may still be support for the recycling industry through other means. President Trump put a heavy focus on “Restoring America’s Mineral Dominance”, as part of this, the new Energy Secretary “shall ensure that critical mineral projects, including the processing of critical minerals, will receive consideration for Federal support”. Battery recycling projects could be interpreted to fall under the category of critical minerals processing.

Key read: Global BESS deployments surpass expectations in 2024

The charging industry, one of the biggest losers of Trump’s executive orders?

Alongside pausing all IRA funding, funding for charging stations from the NEVI program and CFI program will also be halted. While much of the total USD7 billion funding has already been distributed, Trump is threatening the remaining 40%, key capital for the sector that has grown slower than many EV advocates would have liked.

Jeanne Buée, senior charging analyst at Rho Motion commented “This creates a big uncertainty for the charging industry in the US, particularly for CPOs and OEMs operating in the fast-charging segment. We will need to wait and see if the order will be challenged legally or by Congress.”

Key read: US takes further steps to cut China from its EV market supply chain

What has Trump signed on global trade?

Trump signed plans to re-evaluate the trading relationships explicitly with China, Canada and Mexico. With plans to enact 25% tariffs on Canada and Mexico delayed from day one until the 1st of February for now. Additionally, Trump’s government will also “review existing United States trade agreements and sectoral trade agreements” and suggest necessary adjustments for equitable and mutually favourable concessions with free trade partners. While not explicitly mentioned, this includes the EU.

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