As the year 2050 draws near, the deadline to reach zero carbon emissions is creeping closer. Switching from the internal combustion engine to electric-powered motor vehicles is a priority for many countries around the globe. Electric vehicles (EV) technology has plenty of room for advancements, but as it stands, the EV market has a much smaller carbon footprint than the current auto manufacturing market.

Electric vehicles outperform petroleum vehicles even when accounting for the carbon produced during the manufacturing of EV batteries. As countries continue to adjust their infrastructure to meet the requirements outlined in the Paris agreement, the carbon footprint of electric vehicles will continue to shrink. Countries like France and Norway, which rely largely on renewable energy, produce electric vehicles with a smaller carbon footprint than a country like China. Regardless of if humanity is ready or not, the electric vehicle appears to be the future.

Investing in the electric vehicle market

Electric cars have existed for as long as petroleum-powered vehicles have existed. William Morrison is often recognized as the inventor of the first electric car. He created only about a dozen EVs that sold for around $3,000. Interest in EVs declined thanks to the affordability of the Ford Model T. EV technology continued to slowly evolve through the 20th century despite lack of media attention. Inventions like the P1, Electrovair, and Henney Kilowatt were noticed by a small niche market. It was in the year 2008 that a roadster blasted onto the scene making a splash. An impressive 2,400 units were sold over two years. Compare this number to the 300 units of the Corbin sparrow sold, or the 800 units of the EV1 sold.

The roadster was the first of its kind. A sporty markable EV was all that was required to boost EV sales. Of course, the roadster was only made possible thanks to the company AC Propulsion, an innovative producer of batteries and drive transmission. UPS, Amazon, and the US Postal Service have all placed orders for a fleet of EV delivery vehicles. Honda and GM have pledged to produce only EVs in the next 20 years. EVs are the future. Companies like Facedrive, Blink Charging, and Hyliion Holdings Corp. (HYLN stock), all make great potential investments.

Reducing the cost of EVs

Investing in the EV market allows small and medium-size companies to receive funding for operational costs. The EV market has grown exponentially, but major innovations are still required to compete with petroleum engines. Producing an affordable EV is one of the major hurdles the EV market faces. An EV is cheaper over its lifetime, but on average, the purchases of a new EV will cost a minimum of $30,000. A $30,000 sticker price may be too high for many Americans to stomach. As the government continues to create legislation to foster a conducive environment for EVs, the EV market will continue to expand.

Tax credits and other stimuli may be offered as an incentive to EV purchasers. Replacing the battery on EV can be an expensive painful process, but the price of EV batteries is expected to continue to dramatically fall. Infrastructure for EV cars is still being constructed, but the future looks promising. Target recently agreed to work with Tesla’s supercharge team to install Tesla charging stations in 20 cities.

Loss of jobs in the auto manufacturing market

New automatic technology like 3D printers is constantly threatening to permanently remove jobs from the market. Millions of automaker jobs are at risk with the integration of EVs. What may appear to be a bleak situation is really just a transition period. The EV market will eventually bring millions of jobs to the global economy. EV batteries must be manufactured, charging stations must be installed, and designers and engineers are required.

Future of EVs

The future of EVs is here today and requires funding from the global community. In the U.S., Biden is proposing a $174 billion investment into the EV market. This $174 billion stimulus would be used to support automakers and manufacturers in the transition to EVs. This funding would also support the construction of the infrastructure required for EVs. With ample funding and proper legislation, the EV market is estimated to add 130,000 jobs to the U.S. economy.