Cuba's Electric Vehicle Revolution Born from US Oil Embargo

A 60-year-old US embargo is producing an unexpected side effect: Cuba's rapid embrace of electric vehicles as oil supplies dwindle.

Sanctions Spark EV Boom

Cuba has slashed import tariffs on electric vehicles from 200-300% to just 15%, according to Reuters. The dramatic policy shift comes as Washington tightens its oil blockade, leaving Havana scrambling for alternatives.

In the streets of Havana, Carlos Gonzalez, 45, drives his Chinese-made electric car with relief. "No more worrying about fuel costs," he says, referring to his BYD compact that travels 300 kilometers on a single charge.

The Cuban government aims to import 5,000 electric vehicles this year—a 10-fold increase from last year's 500 units.

Survival, Not Choice

This isn't about going green. President Miguel Díaz-Canel calls it "an unavoidable measure for energy independence." Cuba's oil imports have dropped 40% over five years as US pressure intensifies.

The irony runs deep. Cuba's electricity grid still depends 95% on fossil fuels, limiting the carbon benefits of electric vehicles. But for Cubans facing gasoline prices of $1.50 per liter, EVs offer economic salvation.

María López, a Cuba expert in Washington D.C., notes: "Sanctions are inadvertently pushing Cuba toward future technologies."

China's Opening

Beijing sees opportunity in Washington's pressure. Chinese EV manufacturers, led by BYD, are eyeing Cuba's emerging market and exploring charging infrastructure investments.

The geopolitical implications are striking. As America tries to isolate Cuba, it's inadvertently driving the island nation closer to China's technological ecosystem.

Winners and Losers

Cuban consumers benefit from lower transportation costs, while Chinese companies gain a foothold in the Caribbean. American oil companies lose a potential market, and US influence in the region faces another challenge.

The transition isn't without problems. Cuba's aging electrical grid struggles with new demand, and spare parts remain scarce due to ongoing sanctions.