Shifting Gears: The Rapid Evolution of EV Industry

Environment-friendly transport is becoming the new choice of USA commuters as US import of electric vehicles has registered a remarkable surge in the past five years. This is demonstrated by a staggering 2800% increase in the dollar value of EV imports from $368 Mn in 2017 to $10 Bn in 2022 (Data source: Trademo Intel).

Among the exporters, Germany has emerged as the leader with a 33% share, followed by South Korea at 25% and Mexico at 21% of total US imports in 2022 for Electric Vehicles.

Rise of Related Industries and their Correlation

Industries related to the electric vehicles industry such as the Lithium battery industry (HS Code: 850650) and the Battery Monitoring Systems (BMS)/Battery Charger industry (HS Code: 850440) have also experienced a surge in imports.

From 2017 to 2022, the BMS/Battery Charger industry imports have grown by a significant 68% while the Lithium battery industry has increased by 11%.

In 2022 alone, the BMS/Battery Charger industry possessed an overall trade value of $16 billion. China held a 25% share with a trade value of $3.9 billion, followed by Mexico with a 12% share and a trade value of $1.9 billion, and Vietnam with a 9% share and a trade value of $1.4 billion. Speaking of the Lithium Battery industry, it held a 47% share of overall imports with Singapore, China, and Israel being the major contributors.

The correlation analysis for the import data between 2017 to 2022 revealed a high correlation among the industries mentioned above. This means that any fluctuations or changes in one industry can significantly affect others.

The following table represents the correlation matrix.

| - | Lithium Battery Industry | Electric Motor Vehicles | BMS/Battery Charger Industry | |---|---|---|---| | Lithium Battery Industry | 1 | - | - | | Electric Motor Vehicles | 0.441 | - | - | | BMS/Battery Charger Industry | 0.504 | 0.984 | 1 |

The correlation coefficient of imports of EVs and Lithium batteries and imports of BMS/Battery Charger Industry and Lithium batteries is 0.5 which is moderately strong. However, the correlation coefficient of imports of EVs and the BMS/Battery Charger Industry is 0.98 which is highly strong. This indicates that changes in imports of EVs directly impact imports of the BMS/Battery Charger Industry, and vice versa.

For more such advanced trade insights, check out Trademo Intel.