The stakes for workers in how policymakers manage the coming shift to all-electric vehicles

Rapid technological change, new market dynamics, and global action to mitigate climate change is driving a historic shift toward electric vehicles (EVs) in the automotive sector. Although hybrid electric vehicles have been part of the U.S. vehicle fleet for more than two decades, and some mass-market EVs have been available for over a decade, battery electric vehicles (BEVs), which are powered exclusively by a battery and an electric motor, currently make up a small part of U.S. auto sales. And the batteries and other drivetrain components in BEVs are largely made by non-U.S. suppliers. The coming shift toward BEVs is a transformational change to the industry that is by now inevitable. Given that this shift is coming, the most important question for policymakers is how the shift will be managed. Smart policy can transform this industry upheaval into a new beginning for U.S. producers and the rebuilding of a foundation for good jobs. If instead policy remains on autopilot through the upcoming transformation, the shift will instead reduce U.S. employment and further batter job quality in the auto sector