EV Explosion Is About to Go Country.

• Position: RURAL COMMUNITIES

Electric vehicles could make up 10% of all new car sales by 2025, a five-fold increase from current levels that will create new revenue opportunities for rural electric cooperatives. The anticipated surge in adoption of EVs is being fueled by cost reductions, new commitments from car manufacturers, expanded policy initiatives, and an ambitious build-out of charging infrastructure.

According to a report from CoBank's Knowledge Exchange, two percent to five percent of all new car sales in rural communities could be electric by 2025. The urban-rural adoption gap is expected to tighten further as total ownership savings over the life of most EVs are greater for rural residents, who typically log more miles than urban residents. On average, most consumers can expect to save nearly $8,000 in fuel costs over the useful life of an electric vehicle.

"From a grid management perspective, the amount of electricity the U.S. consumes will certainly increase with greater EV adoption," says Teri Viswanath, lead energy economist at CoBank. "However, the investment required to accommodate this growth may be smaller than it appears, as many regions already have sufficient...