Covering the EV industry in the U.S. feels like being strapped to a rocket with zero control over the steering. The pace is warp speed, but the route is full of sharp, unexpected turns. That volatility can spook traditional car buyers who aren’t ready to give up gas cars with abundant access to refueling stations in every state. The climate-friendly argument alone won’t cut it. EVs have to make financial and practical sense, too.

Now a new study suggests that even the most traditional car buyers are showing interest in extended-range electric vehicles (E-REVs).

Welcome back to Critical Materials, your daily round-up of news and events shaping the world of electric cars and technology. Also on the dance card today: The U.S. auto industry has united against the Trump administration’s tariffs, with trade groups representing major automakers writing a letter to the president warning him of the fallout. And Stellantis is back on the job in Canada. Let’s dive in.

30%: Interest In E-REVs Grows In The U.S.

Photo by: Ram

A recent consumer study by McKinsey & Company revealed that EV buyers rarely switch back to gas cars. As many as 76% of EV buyers plan to buy another EV as their next purchase, a 20% increase from last year when only 56% of EV buyers planned to buy another battery-powered model.

But the study adds that on average, the sentiment towards EVs has remained stagnant in the U.S. as the country remains deeply divided on EVs. Adoption in coastal states and among younger urban populations is far higher than those who are older and live in suburban and rural areas.

That’s where E-REVs come in. They have the potential to unite the U.S. on electrification by offering the best of both worlds.

As per the study, a bigger share of suburban, rural and older buyers showed an interest in range-extended EVs. These vehicles come with an electric powertrain, but also get a small gas-powered engine to charge the battery when juice gets low. E-REV drivers can refill at gas stations and can also be charged like an EV, but the gas engine isn’t mechanically connected to the wheels. It’s still electric-only propulsion.

Photo by: McKinsey & Company

Several U.S. automakers are planning to launch E-REVs soon. Stellantis has promised the Ram 1500 Ramcharger this year. And Volkswagen-backed Scout Motors plans to launch E-REVs in both pickup truck and SUV forms.

McKinsey’s survey had nearly 26,000 respondents worldwide and 3,000 in the U.S. It notes that E-REVs will cannibalize from combustion vehicles and regular hybrids, but not from fully electric models and plug-in hybrids. Taking a closer look, 25% percent of respondents 45 years and older said they would consider buying an E-REV, whereas younger consumers showed far less interest, just 18%. And 25% of suburban and 22% of rural area residents also showed intent to buy E-REVs, whereas only 18% of people living in cities expressed the same.

These were the top reasons people preferred E-REVs: Enough range to meet their needs, less range anxiety and the ability to drive electric, without being fully dependent on it. On the flip side, skeptics pointed to a lack of awareness about the tech, the hassle of managing both refueling and charging, and a general disinterest in going electric at all.

Here’s my theory: once EV skeptics get behind the wheel of an E-REV, they’ll realize they’ve been overestimating how much range they actually need. E-REVs are expected to offer around 150 miles of electric-only driving, with up to 500 miles when the gas generator kicks in. For context, the average EV range in the U.S. is nearing 300 miles, far more than the 40-mile average daily drive.

60%: U.S. Auto Industry Unites Against Tariffs

Photo by: InsideEVs

Several leading auto industry trade associations and dealer groups wrote a letter to the White House on Monday, ringing alarm bells about the impact of tariffs on the U.S. auto industry, according to Automotive News.

U.S. automakers rely on an intricate cobweb of global supply chains, sourcing parts from different countries to ensure that purchase costs remain palatable to buyers stateside. Tariffs threaten to increase costs for regular buyers and could result in widespread layoffs, shutter production lines and even cause supplier bankruptcies, the letter warned.

“Tariffs on auto parts will scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive and less predictable,” the letter states.

Here are the groups who signed and supported the joint letter addressed to Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer:

• Alliance for Automotive Innovation (Representing carmakers and suppliers) 
• American Automotive Policy Council (Representing Ford, General Motors and Stellantis) 
• American International Automobile Dealers Association (Dealers of non-U.S brands) 
• Autos Drive America (Representing foreign automakers in the U.S.) 
• MEMA (Suppliers) 
• National Automobile Dealers Association

90%: Stellantis Resumes Production At Canada Plant

Photo by: Patrick George

Stellantis has resumed production at its assembly plant in Windsor, Ontario which produces the Chrysler Pacifica and Voyager and also the Dodge Charger Daytona EV, the local union representing the workers said in a Facebook post.

The automaker had issued a two-week production pause to assess the impact of the Trump administration’s tariffs and also laid off 900 U.S. workers at its factories in Indiana and Michigan. Now half of those workers have been called back.

Even though production has resumed in Canada, the Stellantis plant in Toluca, Mexico where the Jeep Compass and the electric Wagoneer S are manufactured, will remain shut at least till the end of April, Automotive News reported.

The automaker’s Detroit plants that make the Grand Cherokee and Dodge Durango will also intermittently pause production over the next few weeks as the automaker strategizes how to minimize tariff impacts.

100%: Can E-REVs Help The U.S. Accelerate Its EV Shift?

Photo by: Scout Motors

The aforementioned McKinsey study also highlights that the U.S. has fallen far behind China and Europe in EV adoption. And battery executives even warned in a recent InsideEVs interview that America risks losing its auto industry if it doesn’t move fast.

Do you think E-REVs can bridge this ideological and technological shift for the deeply divided American consumers? Leave your thoughts in the comments.

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