Globally, governments are mandating more strict carbon-neutral policies to reduce greenhouse gases and address worsening climate issues. To meet these increasing requirements, most vehicle manufacturers have announced that they will produce vehicles with at least one form of electrification by the year 2030. They are also working to maximize the efficiency of electric drive designs.
While EV sales have increased remarkably, from slightly over 100,000 in 2012 to 20 million in 2025, demand for EVs dropped late in in 2025 due to the expiration of the $7,500 federal tax credit in late 2025. Also, high interest rates and the average selling price of over $50,000 for new EVs, coupled with concerns about the resale value of EVs further impacted sales.
The debate over the environmental impact of EVs compared to other forms of automobile drive/energy sysytems (gasoline, mild hybrid, and plug-in hybrid) has been a hot topic since the introduction of the EVs. The July 2025 report by International Council on Clean Transportation found the following:
- Manufacturing of EVs is more energy-intensive due to mining and refining of lithium, nickel, and cobalt and massive amounts of heat required to manufacture battery cells. In countries that depend on coal for electricity generation the gap is even higher.
- In terms of total GHG emissions (including manufacturing), the break-even point of EVs compared to gasoline powered vehicles in is between 15k to 20k miles of driving.
- Life cycle emissions of EVs are about 73% less than gasoline-powered vehicles.
Therefore, EVs are still proving to be more environmentally friendly compared to gasoline powered and hybrid vehicles over their life cycles. With a future promising more reliable charging stations, more sustainable battery technologies, and lower cost models, EVs still seem to be the best option for now and for the future.
References:
Hong et. Al, November 2022, Tribology and Lubrication Technology
Cox Automotive “Despite Q4 Collapse, 2025 EV Sales Decline Only 2% Versus 2024”
Life-cycle greenhouse gas emissions from passenger cars in the European Union
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