But the rise in EV production is because the supply chain is both strong and weak and goes across borders. The U.S. gets a lot of its minerals, electronics, battery parts, and charging stations from other countries. This quick growth also lets you send a lot of items to other countries, such as new battery solutions, high-tech electric cars, and digital transportation systems.

This blog talks about the greatest problems in the supply chain that are harming the industry and how the U.S. might be able to exploit these problems to aid exporters across the world.

The Supply Chain's Role in the Rise of Electric Cars in the U.S.

As per USA import data by Import Globals, there are a lot more types of electric cars for sale in the U.S. currently than there were ten years ago. Ford and GM are building SUVs and trucks that run on electricity. Tesla is still the best at developing electric cars that can go a long way. Newer companies, such as Rivian and Lucid, are finding their own customers. Hundreds of firms assist keep the country's clean transportation system running efficiently. They also include companies that make batteries, software, and charging technology, in addition to car makers.

But this business is doing very well and needs parts and supplies that aren't created in the U.S. in big enough amounts. As per USA Import Export Trade Data by Import Globals, the supply chain not only determines how rapidly EVs may be made, but it also affects how likely the U.S. is to become a global exporter. In order to have a big export footprint, the U.S. needs to get better at things like having a lot of partners, making sure its supply chains are safe, and being strong at home.

Critical Minerals make it Possible for Electric cars to be made in the United States

People require the minerals that are most vital to them. Lithium, nickel, cobalt, and graphite are the key materials used to manufacture the batteries that power electric cars today. As per USA Import Custom Data by Import Globals, the U.S. imports most of them from other countries since it doesn't have enough mines and processing operations.

Lithium is a key part of how EV batteries work, but most of the lithium that the U.S. uses comes from Australia and South America. Sources in Nevada and California appear good, but it will be years before they can start making and processing things on a massive scale. As per USA Import Trade Analysis by Import Globals, Cobalt is much worse because most of it comes from the Democratic Republic of the Congo and is made into products in China. Getting cobalt is hard for US EV companies because it raises moral problems and could affect the US economy.

Nickel, which is also an important ingredient of batteries, comes from Canada and Indonesia. As per USA Export Data by Import Globals, Nickel costs vary from country to country, and battery firms are buying more and more of it, which makes it hard to get. People, on the other hand, really need graphite. China undertakes most of the labor to make EV anodes out of refined graphite. This gives China a lot of control over the world's graphite supply lines.

As per USA Import Data by Import Globals, These material dependencies have an effect on battery pricing, how stable those prices are, and how many goods can be created in total. This has a direct effect on how successfully the US can sell EVs that can compete.

The Hidden Weak Link Between Electronics and Semiconductors

There are thousands of chips in modern electric cars that control everything from the batteries and safety sensors to the infotainment and autopilot systems. This means that chips are just as important to the supply chain. As per USA Importer Data by Import Globals, Taiwan and South Korea still make a lot of high-tech chips for the US. It will take a while for the new American chip factories that are being built to be able to work at full capacity.

Power electronics like inverters, converters, and fast-charging parts all have to deal with the same problems. A lot of these items come from Europe and Asia, which makes them even more valuable.

There weren't enough chips from 2020 to 2023, which showed how problems may stop car production all around the country. As per USA Import Trade Statistics by Import Globals, the semiconductor supply chain needs to be more stable if the U.S. intends to send more electric cars to other countries.

The Process of Creating Batteries is getting Faster, but not Fast Enough

Making batteries at home is one of the best ways to grow. A lot of gigafactories are going up quickly in places like Texas, Nevada, Georgia, Ohio, Kentucky, and Michigan. The best battery makers in the world and American car companies build these places. This makes it easy to send cells to other countries and makes more cells in the area.

As per USA Import Export Trade Analysis by Import Globals, the U.S. still needs to buy goods from other countries, like anodes, cathodes, electrolytes, and other things. For actual independence, upstream refiners and midstream processors would need to work together on a national level, which is something China is already quite excellent at.

As per USA Exporter Data by Import Globals, The U.S. is making progress, even if it has a lot of problems. American inventors are at the forefront of next-generation technology by creating solid-state batteries, silicon-based anodes, and chemistries that don't use cobalt. This offers them an edge in global marketplaces where having the latest technology is more important than making things inexpensive.

How to Make the U.S. the Best Place in the World to Do Business

The U.S. needs some things from other countries, but it can merely sell more clean-mobility products.

One big chance is to sell electric cars (EVs) with a lot of technology to foreign countries. People in Europe, the Middle East, Japan, South Korea, and Australia are already buying US-made electric cars. As per USA Import Export Global Data by Import Globals, these markets value software that works well, long driving ranges, and excellent quality. People know a lot about Tesla in these locations, but Ford, GM, Rivian, and Lucid are also starting to sell their cars in other countries.

Another wonderful idea is to sell battery technology to foreign countries. The US is at the forefront of research into new battery chemistries. Some of these are solid-state batteries, designs that don't use cobalt, high-density lithium solutions, and platforms that charge very quickly. American firms are also very adept at producing software that helps manage batteries and identify ways to use energy more efficiently that don't require the battery cells to work.

American companies make smart-charging software, V2G (vehicle-to-grid) technology, and fast-charging systems that assist other countries get more electric cars on the road faster. As countries build more charging networks, they will need more American charging equipment and digital grid services.

Lastly, clean-mobility software is a great way to send stuff to other countries. American businesses are the biggest players in the world market for technology that allow automobiles to drive themselves, linked vehicle platforms, and digital fleet management. The value of these digital services will keep rising up as electric cars become more like smart devices that run on software.

Making the Supply Chain Stronger for Future Exports

To get the most out of its exports, the U.S. needs to improve its supply chains. You have to go to a variety of different places to locate key minerals, such Canada, Australia, and Chile. These places are all great. As per USA Export Import Global Trade Data by Import Globals, mining and exploration in the U.S. need to grow in a safe way. Recycling is also very important for getting minerals back from batteries that have run out of juice. We need to spend money on making semiconductors so we can keep making things.

Final Thoughts

This is a very important time for the growth of eco-friendly transportation in the US. Minerals, batteries, and semiconductors are all significant aspects of the US supply chain for electric vehicles (EVs). But it is predicted to become the biggest exporter of electric vehicles (EVs) and batteries in the world, beating out the United States. This is because it can think of new things, make things, and be a leader in technology. The US can stay in leadership of the next generation of green transportation and have a huge impact on the future of electric mobility around the world by fixing flaws in its supply chain and using its high-tech advantages to their fullest. Import Globals is a leading data provider of USA Import Export Trade Data.

FAQs

Que. Why does the U.S. rely so much on imports for its electric vehicle supply chain?
Ans. The United States doesn't mine, process, or create enough semiconductors to make all the parts for electric cars in the world.

Que. Which countries in the globe buy electric cars from the U.S.?
Ans. People in Europe, the Middle East, Japan, South Korea, and Australia are some of the main places where people buy electric cars built in the U.S.

Que. What are the greatest ways to sell things?
Ans. New batteries, charging technology, and clean-mobility software for high-tech electric cars.

Que. What steps can the U.S. take to make the supply chain safer?
Ans. By making additional semiconductors, using minerals in new ways, and cleaning them up at home.

Que. Where to get detailed USA import shipment data?
Ans. Visit www.importglobals.com.