America’s EV market just hit a major milestone — here’s what it means for the future

The electric vehicle market is in encouragingly good health, with a report from Axios revealing that sales in the United States have crossed a major milestone.

Using data from BloombergNEF, and while noting that the information from October and November is preliminary, Axios said that over 1 million battery electric vehicles were sold in the country during 2023. Meanwhile, sales of plug-in hybrid cars are also on the rise.

BloombergNEF also found that the United States’ Inflation Reduction Act (IRA) has encouraged about $100 billion worth of investments in the sector. This includes battery manufacturing — which is booming in southern states — vehicle manufacturing, battery component production, and battery recycling.

The IRA was announced in 2022, with the U.S. government describing it as “the most significant action Congress has taken on clean energy and climate change in the nation’s history.”

It includes measures to encourage sustainable energy production — such as wind power, solar power, and geothermal energy — and tax breaks for consumers looking to invest in electric vehicles.