Oil’s Spike On OPEC Discord Should Remind U.S. Not To Repeat Dependence Mistake With EVs

Washington, D.C.—As the price of oil reached a six-year high after OPEC+ failed to reach an agreement on future production coordination, SAFE EVP Jeffrey Jeb Nadaner made the following statement:

“America’s reliance on a volatile oil market, dominated by a foreign cartel, was and remains strategically unwise. Our dependence on oil means that spikes in price leave consumers with little choice—and is particularly costly during the summer, when Americans are on the road for vacations and reconnecting with family and friends.”

“As the electric vehicle transition gathers momentum, it is important for U.S. policymakers to learn from the last half-century of reliance on oil and ensure we do not repeat this mistake with the electric vehicle supply chain, over which China currently exerts vast control. If we simply swap our dependence on an unstable oil market for a future in which we rely on Beijing for our transportation needs, the United States will have jumped from the proverbial frying pan into the fire.”

In September, SAFE released The Commanding Heights Of Global Transportation, a comprehensive report that assessed China’s vast control of the global EV and battery supply chain, with detailed recommendations to give America and its allies a chance against unfair Chinese trade practices. If the United States adopts the right policies, we can compete with China and create 647,000 jobs.

Among the proposals, SAFE recommends:

  • Scaling up the funds available for the U.S. Department of Energy’s Advanced Technology Vehicles Manufacturing (ATVM) programs, and expand them to include medium- and heavy-duty EVs, AVs, and component manufacturing.
  • Expanding and reforming the 30D light-duty EV tax credit, and create equivalents for medium- and heavy-duty electric vehicles.
  • Reviving the 48C Advanced Manufacturing Tax Credit, which provided a 30 percent tax credit to re-equip, expand, or establish domestic clean energy manufacturing facilities. In reinstating this credit, Congress should expand product eligibility to include AV technologies and other emerging transportation technologies.
  • Creating a domestic cooperative for the rare earth supply chain. Rare earths are vital for EV motors, U.S. defense systems and a variety of other high-tech applications, but approximately 90 percent of the global rare earths supply chain is based in China.

Contact: Alex Adams | 202.461.2374 | aadams@secureenergy.org

About SAFE

SAFE enhances the nation’s energy security and supports our economic resurgence and resiliency, by advancing transformative transportation and mobility technologies and ensuring that the United States secures key aspects of the technology supply chain to achieve and maintain our strategic advantage.

In partnership with the Electrification Coalition, SAFE’s sister organization, we work with consumers, businesses, and policymakers, to launch award-winning “real-world” programs and enable the needed polices to accelerate transportation electrification around the country to reduce our Nation’s dependence on oil.