The Surge of Plug-In Hybrids in the Auto Industry

The Biden administration’s new US emissions rules are paving the way for a surge in plug-in hybrid cars. The US Environmental Protection Agency recently finalized a rule requiring automakers to significantly increase the number of battery-powered vehicles sold this decade, aiming to reduce the country’s carbon emissions. By 2032, more than half of new cars sold must be electric.

However, the rules have been modified since their initial draft nearly a year ago, allowing automakers more flexibility in meeting the government’s new tailpipe emissions goals. One significant change is the inclusion of plug-in hybrids. Initially, auto companies could only meet the zero-emissions goals by selling more battery-electric cars. But after lobbying from automakers and unions, manufacturers are now allowed to use plug-in hybrids to meet the standards.

This means that carmakers can satisfy federal rules by ensuring that two-thirds of their 2032 sales are battery electric, or that battery-electric vehicles are just over half of their sales, and plug-in hybrids account for 13 percent. As a result, expect to see a significant increase in these types of hybrid vehicles on the road.

However, the technology has a climate hitch: it’s only as emission-free as its drivers choose to be. While plug-in hybrids are powered primarily by electric batteries, they are supplemented by a gas-powered engine once the batteries deplete. Therefore, the environmental impact of these vehicles largely depends on how often drivers choose to recharge their batteries.

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