the Electric Vehicle (EV) Boom
Electric vehicles are appearing on roads in growing numbers, and the entire sector is gaining momentum. Here’s a clear overview of what’s driving the EV market today.
If you’ve been on the highway lately, you may have noticed more electric vehicles (EVs) sharing the road. While EVs have been available in the United States for nearly two decades, the market has seen accelerated growth recently. Global EV sales rose by about 20% in 2024, and in the first quarter of 2025, sales jumped roughly 35% compared with the same period a year earlier. Looking ahead, the International Energy Agency expects this upward trend to continue, with EVs potentially making up nearly one-quarter of all passenger car sales in the U.S. by 2035.
Both government policies and private investment have helped fuel this expansion. The previous administration under President Joe Biden set an ambitious target of having 50% of all vehicles sold in the U.S. by 2030 be fully electric or hybrid. Between 2021 and 2022, companies poured nearly $85 billion into EV-related projects. As of 2024, the U.S. had more than 190,000 public charging stations but experts agree that far more will be needed if production scales up as forecasted.
With so much activity underway, it’s no surprise that many investors are interested in learning more about opportunities in the EV space.
Key Parts and Raw Materials
To understand where investment potential lies in the EV industry, it helps to look at the core components that power these vehicles.
The battery is the heart of any electric vehicle. Most EVs and plug-in hybrids rely on lithium-ion batteries, which require significant amounts of lithium along with other materials such as copper, nickel, iron, silver, and aluminum. As EV adoption increases, demand for these critical minerals is expected to rise sharply.
This growing need has drawn attention to companies involved in mining, refining and processing these raw materials. EV manufacturers are actively working to strengthen and secure their supply chains, and there is increasing discussion about the need for additional mining capacity to meet future demand.
Where to Invest: From Established Players to Emerging Companies
Investing in the EV boom doesn’t mean you have to buy shares in an electric vehicle manufacturer directly. Opportunities exist across a wide range of companies, including:
Traditional (“legacy”) automakers that are rolling out new EV models over the coming years
Innovative startups and newly public companies focused on electric mobility
Foreign firms with strong EV technology or manufacturing capabilities
Companies building charging infrastructure, from installing physical stations to developing nationwide networks
This broad ecosystem gives investors multiple ways to gain exposure to the sector’s growth.
Do Your Research Before Investing
The EV industry is still evolving and it can be challenging to identify which companies will ultimately lead the market. With many players competing, some more advanced in technology and execution than others, the space carries notable risk. Many EV-related stocks remain highly speculative and may be best suited for investors with a higher tolerance for volatility.
One practical way to participate is through exchange-traded funds (ETFs). Some ETFs focus on pure-play EV themes, such as battery producers, clean energy firms or companies developing charging and communications technology. Others provide broader exposure that includes established automotive giants transitioning into EVs. ETFs can offer convenient diversification across multiple companies, which may help reduce the risk compared with investing in individual stocks.
That said, diversification does not ensure profits or protect against losses. Investors should carefully evaluate their own goals and risk tolerance. Consulting with a financial advisor can be helpful when making decisions in this dynamic sector.