Maybe massively subsidizing cars that need insane amounts of resource extraction isn't the best solution here, and there are other ways to deal with this.

Personally I'd prefer if we didn't pave over the whole world with roads and suburbs.

Resource extraction for batteries and EV will at its worst casue localized pollution. That is preferable to a high CO2 future that will make most of the global south.

This is not true, as subsidizing cars makes suburban and exurban locations cheaper. Significant land use change in this way absolutely contributes to high atmospheric CO2 as well as widespread environmental destruction.