According to a report by Atlas Public Policy, electric vehicle (EV) sales in the United States are projected to reach a record 9% of all passenger vehicles this year. This marks a significant increase from 7.3% in 2022 and will be the first time that over 1 million EVs are sold in the country within a single calendar year. The research firm predicts that the actual number of EV sales will likely fall between 1.3 million and 1.4 million cars.

While the growth in EV sales is a positive indicator of progress in electrification, the United States still lags behind other countries such as China, Germany, and Norway. In these countries, EVs accounted for 33%, 35%, and 90% of new car sales, respectively, during the first half of 2023. Factors such as ambitious government targets for zero-emissions vehicles, vehicle tax incentives and subsidies, and affordable options have contributed to higher levels of EV adoption in these nations.

In the United States, several factors have contributed to the increase in EV adoption this year, with one key driver being the decline in prices. Tesla, the current market leader in EVs, has lowered the prices of its popular vehicles multiple times throughout the year, prompting other automakers to follow suit. Additionally, car companies are offering greater incentives and dealers are providing deeper discounts on electric models as EV supply increases at dealerships. The Inflation Reduction Act, which increased tax credits for qualifying new and used EV purchases, has also played a significant role in reducing costs for buyers by $3,750 or $7,500, depending on certain requirements.

Another contributing factor to the rise in EV adoption is the falling cost of electric car batteries. As critical battery materials like lithium become less expensive, the overall cost of EVs is becoming increasingly affordable. However, despite the steady growth in the market share of EVs in the United States, there are still barriers that prevent some consumers from considering electric vehicles. Inaccessible and unreliable public charging infrastructure, as well as the higher upfront costs of EVs compared to traditional cars, remain significant hurdles.

According to BloombergNEF, last month, the average cost of a new EV was $3,826 higher than the average new car, with EVs priced at $51,762 versus $47,936 for traditional vehicles. To address some of the infrastructure challenges, major automakers have adopted Tesla's charging technology. As Tesla has utilized the North American Charging Standard for its EV plugs and maintained a robust public charging network, incorporating Tesla's tech will provide non-Tesla EV drivers with more charging options and alleviate concerns about charging availability. However, these changes are not expected to take effect until next year and 2025.

Furthermore, concerns have arisen within the industry regarding a potential slowdown in the EV market. Automakers like Ford Motor Co. and General Motors have scaled back their electrification targets. However, many non-domestic car companies are ramping up their EV plans, with Chinese EV-makers such as BYD expected to enter the U.S. market in the coming years.

Various states in the U.S. have set target dates for the majority of vehicle sales to be zero-emissions. California and Washington have mandated that 100% of new vehicles sold in the state be zero-emission by 2035, while New Jersey will ban the sale of new gas-powered vehicles by the same year.

While EV adoption is growing in the United States, there is still progress to be made in addressing disparities in factors such as income, consumer willingness to adopt new technology, and accessibility to home charging. As the auto industry targets the next wave of EV shoppers, it will need to find solutions to these challenges.

Overall, the increase in EV sales in the United States is a positive development, but the nation needs to continue its efforts to catch up to countries leading in electrification. The availability of affordable options, government incentives, improved charging infrastructure, and addressing consumer concerns are key factors that will shape the future of the EV market in the United States.

Note: Alexa St. John is an Associated Press climate solutions reporter. Follow her on X, formerly Twitter, @alexa_stjohn. Associated Press climate and environmental coverage receives support from several private foundations. See more about AP's climate initiative here. The AP is solely responsible for all content.