Economic and political sanctions on Russia, including bans on Russian oil imports, have pushed the crude oil prices to record highs. The Russia-Ukraine war has precipitated a global energy crunch, and U.S. natural gas prices have jumped 108%, hitting their highest level since 2008. The environmental impact of fossil fuel powered vehicles and soaring crude oil and gas prices have been incentivizing people to switch to electric vehicles (EVs). And the demand for EVs is expected to grow substantially in the coming years.
Furthermore, supportive government funding and policies are contributing significantly to the growth of the EV industry. Based on a forecast by market consultant AutoPacific, U.S. sales of EVs are projected to total 670,000 in 2022, registering an increase of 37% year-over-year. And according to a report by Facts and Factors, the global electric vehicle market is expected to reach $980 billion by 2028, growing at a 24.5% CAGR.
