The growing capability of China to dominate the EV market concerns the United States, according to Energy Secretary Jennifer Granholm.

She expressed concerns over China’s potential to overshadow the American EV industry during an Axios event in Washington.

The energy secretary highlighted the rapid production of affordable EVs by Chinese companies, posing a threat to major U.S. automakers, particularly those that have recently focused on producing large gasoline-powered sports utility vehicles.

The United States fears a repeat of the past scenario with solar panels, where China significantly impacted the market. Granholm reminisced about the origins of solar technology in the U.S., lamenting its overshadowing by China through market saturation.

In response, the U.S. is leveraging the Inflation Reduction Act (IRA) and other initiatives to make domestic EVs more accessible to consumers. Granholm emphasized the importance of affordability in the EV market, noting China’s substantial investments aimed at dominating the industry.

A significant development in addressing these concerns is the U.S. Commerce Department’s recent decision to investigate the national security implications of importing Chinese vehicles.

This investigation stems from fears regarding the extensive data collection capabilities of modern vehicles, including sensitive information about drivers and U.S. infrastructure. The scrutiny reflects growing unease over China’s influence on America’s technological and security landscapes.

The EV sector itself is currently experiencing a slowdown, with traditional automakers and new entrants like Tesla and Rivian reevaluating their investment and product strategies as of late 2023. This period of recalibration comes amid a complex backdrop of competitive pressures and evolving market demands.

Some analysts argue that resisting China’s EV advancements could be counterproductive for the U.S. They suggest that collaboration rather than confrontation might serve both nations’ interests better, fostering innovation and accessibility in the clean energy market.

As China EV market dominance concerns US, can such a partnership  actually potentially benefit consumers worldwide by making sustainable vehicles more affordable and widely available?