The rapidly growing industry presents a promising opportunity for E-5 investors.
Electric Vehicle (EV) manufacturing is one of the most dynamic and transformative sectors in the automotive Industry. Given the global push toward sustainability and eco-friendliness, it’s only projected to keep expanding.
EV industry as a whole:
As the name suggests, an electric vehicle is a vehicle that draws energy from a rechargeable electric battery rather than a gas tank. Lowered emissions, Convenient home charges, to say nothing about never having to worry about ever-volatile gas prices, have the public very interested. More than a third of Americans say they would “definitely” or “seriously” consider buying or leasing an electric-only vehicle, according to the Consumer Reports survey of 8,027 US adults.
But electric vehicles weren’t always so popular. The industry has witnessed exponential growth in recent years. In 2020, despite the challenges posed by the COVID-19 pandemic, global sales of electric cars exceeded 3.1 million: a 41% increase from the previous year. Consumer Reports estimates that by the end of 2024, there will be more than 70 EV models on the market, whereas in 2020 there were only six. This trend is only expected to continue, with estimates projecting that by 2030, electric cars will make up around 28% of the global car market.
One of the most critical aspects of the electric vehicle industry is its role in promoting sustainability. By relying on electricity as opposed to fossil fuels, electric vehicles reduce the dependence on finite resources. EVs produce zero tailpipe emissions, which significantly reduces air pollution and contributes to a cleaner environment.
The shift towards sustainable materials and manufacturing processes in the EV industry is remarkable. Many automakers are exploring eco-friendly materials, sustainable battery technologies, and innovations that would reduce their carbon footprint. For example, Tesla has installed a large solar array at its Gigafactory, which generates enough renewable energy to power the facility while reducing carbon emissions. Nissan is another frontrunner with its vehicle-to-grid technology which is able to return the electricity back to the power source, showcasing that “regular” automakers are interested in getting their foot into the growing industry’s door. Polestar, an electric counterpart of Volvo, is another notable contender, with its recycled-material car seats as well as dedication to creating a fully carbon-neutral car by 2030.
Push for sustainability is not the latest social fad bound to fade into the background when the interest dies down: it is here to stay. And with it, so is the electric vehicle industry, offering eco-friendly and sustainable solutions to the transportation sector while also presenting compelling investment opportunities for those looking to get ahead of the green future. And investors all over the world are buying. A Julius Baer Global Wealth and Lifestyle Report showed that most high-net-worth individuals find sustainability to be an important factor in their investment decision-making. With a projected market size worth $13182.22 billion, sustainable investments not only align with the global push for eco-friendly solutions but present an abundance of financial opportunities.
A successful EB-5 investment project possesses key characteristics that both attract and reassure potential investors. The EV industry has the potential to be an exemplary option with all of them.
First and foremost, job creation is necessary for all E-5 investors’ projects and as a rapidly expanding field, the EV field has exponential demand for skilled labour. The industry is projected to support 187,000 annual jobs for the next five years.
Moreover, thanks to increasing consumer interest, government incentives and technological advancement, the sector offers a strong potential for financial viability. As mentioned above, the market size is expected to hit $13118.22 billion by 2028.
As sustainability becomes a central concern for both consumers and investors, the electric vehicle industry is poised to lead the way in transforming the automotive landscape. As evident, in part, by the popularization of Formula E, a motorsport championship for electric cars that first debuted ten years ago as an eco-friendly alternative to its popular counterpart Formula 1.
The viewership for the event was up 17% in the 2022/23 championship year, with 344 million, and while these numbers may not have reached Formula 1 levels just yet, Formula E’s increasing popularity signals toward electric vehicles’ inevitable presence in every sector of the automotive world. Once thought of as slow and sensible, Formula E shows that fast car enthusiasts won’t necessarily have to sacrifice their love of speed to lead a more eco-friendly life.
Increased demand always comes with a responsibility to increase supply. But every booming industry, especially one as rapidly expanding as EVs, is bound to encounter some roadblocks. In this case, it’s the cars’ electric battery supply. According to a Coalition for Prosperous America (CPA) report, a sufficient supply of lithium-ion batteries needed to meet the demand simply does not exist. The US, due in large to weak investment, lack of federal policy and limited natural resources, is lagging behind China and the European Union in guaranteeing its population enters into an eco-friendly vehicle future head-on.
But the US’s largest Nickel and Cobalt producer is working hard to remedy this governmental oversight. US Strategic Metals (USSM) has already secured multi-million-dollar funding from a variety of sources and necessary environmental permits to create a closed-loop, raw-material production and recycling process that will ensure the US meets imminent demands of renewable-energy industries in an eco-friendly and sustainable manner.
All in all, the Electric Vehicle industry holds great promise for both consumers and developers. It offers a sustainable future with minimal to no lifestyle changes for car owners and auspicious opportunities for investors. With increased government interest and federal funding deserving of its potential, EVs can offer both convenience and sustainability, making a morally correct choice also a simple one.