Battery Electric Vehicle Collision Claims Rise 31% in North America Amid Tariff Threats

The adoption of battery electric vehicles (BEVs) in North America is accelerating, with collision claims rising alongside their growing presence on the roads. Recent data reveals a 31% increase in collision claims for repairable BEVs in the U.S. and Canada compared to the previous year, with BEVs showing higher repair severity and greater use of original equipment manufacturer parts than internal combustion engine vehicles. However, the growth of BEVs faces challenges from new U.S. tariffs, which are expected to increase manufacturing and repair costs, potentially reducing consumer adoption and impacting both new and used vehicle markets. On the supply side, the global EV market is expanding rapidly, with battery capacity deployment projected to surpass 1 terawatt-hour this year, driven by the demand for critical battery metals like cobalt, nickel, and lithium. While cobalt and nickel prices are strengthening, lithium prices have recently hit a four-year low, influenced by shifts in battery chemistries such as the rising use of lithium iron phosphate batteries, especially in China. The interplay of trade policies, raw material costs, and evolving battery technologies will significantly shape the future trajectory of the EV industry.