Thriving Global EV Market – Consider the sources
Projections for 2025 indicate even stronger performance, with sales expected to surpass 20 million units, representing more than one-quarter of total global car sales.
BloombergNEF forecasts nearly 22 million battery-electric and plug-in hybrid vehicles sold this year, a 25% rise from 2024.
Key drivers include falling battery costs, expanded charging infrastructure, and policy support in major markets like China, Europe, and the US. China remains the dominant player, accounting for over half of global sales, while Europe and North America show steady growth.
Revenue in the EV sector is projected to reach $784.2 billion in 2025, with a compound annual growth rate (CAGR) of 32.5% through 2030.
In May 2025 alone, global plugin vehicle registrations hit 1.6 million, up 22% year-over-year, pushing the market share to 25%.
Despite this momentum, challenges persist, including supply chain issues and raw material shortages. Yet, the outlook remains optimistic, with mainstream models from manufacturers like Tesla, BYD, and Volkswagen driving adoption.
Matson cited the “hazardous nature” of these vehicles in a letter to customers, halting new bookings across all trades.
While no specific incidents involving Matson’s operations were reported, high-profile cargo ship fires in recent years—some linked to EVs—have amplified scrutiny.
This suspension could disrupt EV supply chains, particularly for island markets like Guam, and may prompt other carriers to reassess their policies. It underscores the need for enhanced safety protocols, such as specialized containers or fire-suppression systems, to mitigate these risks without halting progress.
Rising Homeowners Insurance Costs in the US for EVs and Lithium Batteries
Homeowners with EVs parked in garages may see insurance rates increase by up to 64%, as carriers factor in higher repair costs and potential property damage.
Agents increasingly inquire about EV ownership and charging setups during policy renewals, viewing them as elevated risks similar to water damage or electrical faults.
For instance, installing a Level 2 charger often requires wiring upgrades, which could trigger policy adjustments or higher premiums to cover fire liabilities.
Lithium battery storage systems, such as home power walls, exacerbate these concerns. These units, popular for energy backup, carry risks of overheating or chemical leaks, leading insurers to impose surcharges or require safety certifications.
While not all policies hike rates automatically—some experts advise notifying agents without immediate increases—carriers like State Farm have taken precautionary steps, such as removing EV chargers from their own parking garages over fire fears.
Overall, EV-related homeowners insurance can cost 20-50% more than for traditional vehicles, depending on the carrier and location.
This trend is particularly pronounced in wildfire-prone areas, where battery risks compound existing vulnerabilities.
Will Insurance Shut Down EV Availability for the Average Buyer?
Some carriers perceive EV charging as a “significant fire risk,” leading to higher rates, special safety mandates, or limited coverage options.
Thermal incidents, though rare, result in total losses and costly claims, prompting caution.
For the average buyer, these added expenses—combined with EV purchase prices—could deter adoption, especially if premiums rise further amid ongoing fire incidents.
Innovations in battery safety and insurer education may mitigate concerns, ensuring EVs remain viable. Still, without regulatory interventions or subsidies to offset insurance hikes, affordability challenges could slow the transition for middle-income households.
