Incentives and lower costs drive electric vehicle adoption in our Annual Energy Outlook

According to our Annual Energy Outlook 2023 (AEO2023), we project that electric vehicles (EVs), including both battery-electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), will account for between 13% and 29% of new light-duty vehicle sales in the United States in 2050 and between 11% and 26% of on-road light-duty vehicle stocks. Declines in EV component costs, along with federal and state policies that provide incentives for EV purchases or require minimum sales, drive EV sales growth in our model projection.