An electric vehicle (EV) is a passenger car, truck or bus that runs at least partially on electricity. EVs can be all-electric vehicles (EVs), hybrid electric vehicles (HEVs) or fuel cell electric vehicles (FCEVs). EVs are available today at many price points and are often cheaper to operate than similar gasoline-powered cars. Energy costs are lower, and buyers may also benefit from federal Clean Vehicle Tax Credits and state and utility incentives.
EV adoption continues to accelerate globally. According to McKinsey’s 2025 Mobility Consumer Pulse Survey, more than 45 percent of new car customers were considering purchasing an EV in the next five years. This is largely due to a favorable customer experience, the availability of affordable models, and growing confidence in battery performance and range.
The EV ownership experience is very different from that of a traditional gas-powered vehicle. The lack of oil and other maintenance costs significantly reduces operating expenses. EVs typically need to be recharged only when they are not in use, which can be done at home or at public EV charging stations that feature DC fast-charging technology that gives drivers 10 miles of range per minute.
Critical mineral prices and supply chain constraints continue to be a concern, particularly for lithium-ion batteries, which currently make up almost all of the EV market. However, battery chemistries are improving and alternatives, such as lithium iron phosphate (LFP) batteries, could help address critical minerals issues without sacrificing the benefits of EVs.