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The EV future takes a hybrid detour

Your guide to the political forces shaping the energy transformation
Jan 31, 2024 View in browser
 
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By David Ferris

A 2019 Chevrolet Volt is pictured.

The Chevy Volt, General Motors' last foray into U.S. plug-in hybrid electric vehicles. | Chevrolet

General Motors is resuscitating the plug-in hybrid — a technology it had left on its scrap heap even before it pledged to go all-electric by 2035.

The reversal reflects a reckoning across America's auto industry as it tries to satisfy both regulators and fickle customers, all while remaining financially afloat amid the ever-present threat from Tesla.

GM CEO Mary Barra told investors Tuesday that reviving the plug-in hybrid — or PHEV — will help America’s biggest automaker comply with stricter fuel economy standards proposed by EPA. She emphasized that GM will continue to offer all-electric models and is still good for its pledge to produce only electric vehicles by 2035

“We are timing the launches to help us comply with the more stringent fuel economy and tailpipe emission standards,” Barra said.

No vehicle captures this particular moment in the American auto industry like the PHEV.

Its configuration — mostly electric, with a gasoline backup engine — is profoundly different from that most famous of hybrids, the Toyota Prius. The traditional Prius actually runs on gasoline, with a little battery to provide a boost and share the propulsion duties.

The PHEV is a different sort of compromise.

That’s because EPA’s efforts to cut tailpipe emissions — and encourage EV production — is colliding with America’s feeble EV-charging network. Charging stations are multiplying fast, but nowhere near fast enough to allay the fears of most car-buyers that they won’t have a plug when they need it.

So the PHEV’s particular proposition — zero-emissions on short, all-electric trips, but with a reassuring gas tank for longer ones — has caused many automakers to reembrace them, after they seemed likely to disappear.

The big name in PHEVs is, once again, Toyota, the Japanese automaker that has enraged environmentalists with its staunch refusal to promise to go all-electric. Instead, the company has hedged its bets to include all sorts of drivetrains, including PHEVs like the Prius Prime.

The irony is that GM created the first mass-market American PHEV. The Chevy Volt, debuted in 2010, introduced many drivers to an electric ride for the first time. But GM shelved it in 2019 to make room for its first mass-production EV, the Chevy Bolt — not the first time the company has killed an electric car.

Now GM is making a grudging return to the car it largely invented.

“GM is going to backtrack into what Toyota is doing,” said Karl Brauer, an auto analyst at the sales site iSeeCars.com. “This is 1,000 percent a sign that Toyota was right.”

 

It's Wednesday — thank you for tuning in to POLITICO's Power Switch. I'm your host, David Ferris. Power Switch is brought to you by the journalists behind E&E News and POLITICO Energy. Send your tips, comments, questions to dferris@eenews.net.

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Today in POLITICO Energy’s podcast: Annie Snider breaks down the pushback over the Biden administration's support of efforts to replace hydropower dams along the Snake River.

 

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Power Centers

John Podesta

White House adviser John Podesta. | Robin Bravender/E&E News

Podesta to replace Kerry
White House adviser John Podesta has been tapped to replace former Secretary of State John Kerry as the Biden administration’s top climate diplomat. Kerry is preparing to step down from that post this spring, Zack Colman reports.

Podesta is expected to operate out of the White House. He will also keep his current overseeing implementation of the 2022 Inflation Reduction Act, Biden's signature climate law.

GOP targets Biden's gas export pause
House Republicans are training their fire on the Biden administration's pause of new liquefied natural gas export permits, Nico Portuondo and Manuel Quiñones write.

It starts next week with a House Energy and Commerce Committee hearing on the decision, and there are plans for a week of legislative action on energy issues. In the Senate, Louisiana Republican Sen. John Kennedy has said he will block key administration nominees until export approvals resume.

The Department of Energy announced Friday that it would stop approving new LNG export licenses to countries without free-trade agreements as it reviews the effect on carbon emissions and energy prices.

Newsom's second thought on disclosure
California Gov. Gavin Newsom (D) included no money in his fiscal 2024-2025 budget proposal for the state to implement a set of climate disclosure rules. The measures had been hailed as a leap forward for corporate accountability, Anne C. Mulkern writes.

The rules passed last year would require companies to divulge more information about their greenhouse gas emissions and their financial risks tied to global warming. When he signed the corporate disclosure measure, Newsom said it demonstrates "California's continued leadership," but he noted that the implementation deadlines might not be feasible.

A lithium bust?
The plummeting price of lithium and the financial fallout for miners add new hurdles to President Joe Biden's EV agenda, Hannah Northey writes.

Falling lithium prices have prompted one big producer of the key ingredient in EV batteries to cut jobs and hold off on a U.S. project. The price of critical minerals cuts in different ways. It could bring down the price of electric cars. But it also makes it harder for companies to invest in new U.S. mines and processing plants.

In Other News

Blame Canada: The 715-mile Trans Mountain pipeline expansion will open soon, shuttling Canadian oil to the Pacific Coast and away from the Midwest, where it had been driving down gasoline prices.

Swifties unite: Private jet trips create a lot of carbon emissions. Some of Taylor Swift's devoted fans are wondering whether she plans on making the 14,000-mile trip from her concert in Tokyo to the next day's Super Bowl, where her boyfriend Travis Kelce will be playing for the Kansas City Chiefs.

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Snow collects around the New Hampshire State House in Concord.

The New Hampshire Statehouse. | Jim Cole/AP

New Hampshire lawmakers unanimously rejected a bill that would have criminalized the consideration of climate impacts and other environmental, social and governance issues when investing state funds.

The owner of the shuttered Palisades nuclear power plant southwest of Grand Rapids, Michigan, is signaling a massive loan could come soon from the Department of Energy.

The Railroad Commission of Texas wants the state to sue EPA over its new methane regulations for oil and gas.

That's it for today, folks! Thanks for reading.

 

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