The transition to electric vehicles (EVs) has been picking up speed in the past few years. EV car sales have grown as a percentage of total car sales, almost doubling from 3.2% in 2021 to 5.8% in 2022. In America, new EV sales are projected to pass one million for the first time this year.
The federal government is bolstering the transition from internal combustion engines (ICE) to electric, and its goal is that by 2030 half of all car sales will be electric. It has provided public funding through a series of bills, including the Inflation Reduction Act (IRA), which supports consumers looking to purchase an EV. The IRA gives tax credits to EV purchasers of $7,500 toward a new EV, up to $4,000 toward a used EV, and up to $40,000 for a new commercial vehicle.
The 2021 Bipartisan Infrastructure Bill also provides a large funding pool to accelerate America’s transition to EVs. This bill includes almost $3 billion in funding in support of companies extracting and processing critical minerals for EV batteries.
The government’s funding, and particularly the IRA, are focused on rewarding companies willing to manufacture and assemble products in America. This way the government hopes not only to accelerate the adoption of EVs but also to establish the United States as a leader in the transition.
Greenland Technologies Brings EV Technology To Heavy EquipmentGreenland Technologies Holding Corporation GTEC is looking to further the EV transition in the heavy machinery sector, and it is the first U.S. company to be producing a line of fully-electric industrial equipment. Greenland Technologies just built a plant in Maryland for the domestic manufacturing and assembling of its products.
The company has spent over a decade as a specialized transmission and drivetrain systems provider in the industrial machinery market. This experience gives it the ability to manufacture complex products and scale them while continuing its commitment to creating premium products.
Now Greenland Technologies is advancing a complete line of fully-electric heavy equipment under its HEVI brand. HEVI’s product line will include excavators, loaders and forklifts. The company believes that this is the perfect time to be developing its all-electric products, as these machines produce a lot of pollution – creating a significant amount of interest in transitioning the heavy equipment sector to electric.
23% of all U.S. greenhouse gas emissions come from the industrial sector, and Greenland Technologies believes it has a first-mover advantage in the heavy equipment segment. Diesel currently produces 22.45 lbs of CO2 per gallon of diesel burned – which makes a large difference in air quality. An estimated 36% of Americans live in poor air quality regions which makes it vital to be environmentally conscious – in fact, Greeland reports that no one else in the industry is seriously looking to commercialize their electric line of construction vehicles.
This is a significant sector, as the global construction equipment market was worth $191 billion in 2022. It is expected to grow at a compound annual growth rate (CAGR) of 8.4% from 2023 to 2030. As the technology improves and EVs expand from light-duty cars into the medium- and heavy-duty vehicle segments, this could be the perfect time to bring electrification into the industrial machinery sector.
This sector has not yet been penetrated by EV technology, and it seems unlikely that major manufacturers like John Deere DE and Caterpillar Inc. CAT will want to move too quickly toward EVs, as this would only hurt their own ICE business segment. Greenland Technologies believes that this leaves the market opportunity wide open for them, and it anticipates rolling out its first finished product from the Maryland facility in Q2 of 2023.
Read about how Greenland Technologies is bringing EVs to the construction equipment market.
Featured photo courtesy of Greenland Technologies Holding Corp.
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.