The Flaws in the Biden Administration's Electric Vehicle Mandate

In July, the Conservative Political Action Coalition Foundation (the CPAC Foundation) launched its Center for Regulatory Freedom. Focusing on in-depth analysis of federal regulatory proposals, and working to educate grassroots activists, what has become clear are the sheer number of proposed (and final) rules that the Biden Administration has served up to fundamentally transform the lives of everyday Americans (and not in a good way). One such proposal is the Biden Administration’s electric vehicle mandate, which would require that the majority of new cars and trucks sold in the United States be electric by 2032.

Electric vehicles (EVs) have long been touted as the savior of the environment, as they promise reduced carbon emissions and cleaner air. While the idea of transitioning to EVs seems progressive and appealing, the Biden Administration's recent mandate to accelerate this transition raises several critical concerns that need to be addressed.

• Inadequate Electric Grid Capacity: Our current electric grid is not equipped to handle the massive demand surge that a full-scale transition to EVs would necessitate. Already, our power grid faces challenges during heatwaves and other high-demand periods. Overloading it with millions of EVs needing daily charging is akin to adding fuel to a fire. Without significant infrastructure improvements – which would require substantial time and capital – this mandate seems premature and even dangerous (as Energy Secretary Jennifer Granholm herself discovered while doing a tour to try to sell America on EVs).
• Environmental Costs of EV Batteries: While EVs themselves may produce zero emissions when on the road, the environmental impact of their battery production is a grim story. The extraction, processing, and disposal of the minerals required for EV batteries can be devastating. Mining activities for these materials cause deforestation, loss of biodiversity, and water pollution. The question arises: Are we merely swapping one environmental crisis for another?
• China's Dominance and Questionable Ethics: In a geopolitical context, now seems to be an ill-advised time to boost the electric vehicle sector, which heavily leans on China. China has been heavily subsidizing its EV manufacturing, making their vehicles cheaper and more competitive on the global stage. By pushing aggressively for EV adoption, the U.S. inadvertently hands over significant economic leverage to China. Furthermore, China is already maneuvering to dominate the EV market in the European Union, and our policies may bolster their global dominance.

Beyond the economic implications, there are severe ethical concerns too. There's increasing evidence that suggests China uses what is essentially slave labor both in the extraction of rare earth minerals and in the manufacturing of EVs. By relying so heavily on China for EVs, we indirectly support and condone these human rights violations.

It’s important to note that the economic implications of the EV mandate go far beyond the American auto industry, and not even just to the oil and gas industry. It has already become clear that President Biden is delivering on his campaign promise to kill the oil and gas industry in the United States (canceling leases in Alaska, proposing massive burdens on drillers in the Gulf of Mexico, killing pipelines of all kinds)—this would exacerbate those problems. But it also extends to our agricultural sector as well, especially those who work hard to produce renewable fuels.

While the goal of reducing carbon emissions and curbing climate change could be considered noble, the means to achieve it – through the Biden Administration's EV mandate – appears fraught with challenges, both ethical and practical. A more thoughtful and holistic approach, that considers the entire lifecycle of EVs, the readiness of our infrastructure, and the ethical ramifications of our supply chains, is necessary before pushing forward with such sweeping changes.

The administration has finalized its EV sales mandate and has opened to process to solicit opinions on fuel economy standards, but given the sweeping changes being mandated to the auto industry and the accelerated timeframe for doing so, we, as a society, may not have the time to wait for either the courts or a new administration to put an end to what would be devastating to the US.  Congress needs to look at these proposals within the framework of the appropriations process, and take steps to deal with it there. History is littered with failures of so-called industrial policy, where those who think they're smarter than the rest of us make choices, rather than the free market. When regulations have the power of law, like vehicle sales mandates or unreachable fuel economy standards, that is exactly what the government is doing.

Andrew Langer is Director of the Center for Regulatory Freedom at the CPAC Foundation