Electric cars became more affordable across much of the world in 2025 — except the U.S.
One in four cars sold globally is now electric. Penetration in the U.S., however, still hovers just around 10%, according to the International Energy Agency’s Global EV Outlook 2026 report released on May 20.
Over the past year, average EV battery prices declined by 8% due to relatively low raw material costs and widespread adoption of lithium iron phosphate technology, which reduces reliance on expensive materials like cobalt and nickel. Global electric car sales exceeded 20 million during the year, growing by 20% from 2024.
In the U.S., sales were slightly down last year, with policy shifts making it harder to manufacture and afford EVs. The lack of low-cost Chinese options added to the problem, as did the country’s love for big cars.
U.S. EV policy’s pitfalls
