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Biden has a $ 174 billion electric vehicle plan in Michigan

The charging socket can be seen on the brand new electric Mustang Mach-E-vehicle from Ford Motor Co during a photo shoot in a studio in Warren, Michigan, USA, on October 29, 2019. REUTERS / Rebecca Cook

President Joe Biden spoke out Tuesday for his $ 174 billion electric vehicle plan and called for government grants for new battery production facilities during a visit to a Ford Motor (FN) Michigan electric vehicle plant.

“We’re going to set a new pace for electric vehicles,” Biden said, pledging to reverse what he termed the Trump administration’s “short-sighted” withdrawal of vehicle emissions standards while he picks up the passage of his ambitious $ 2.3 trillion in jobs and infrastructure bills.

Biden argues that the US is falling behind China, which sells more electric vehicles.

“The real question is whether we will lead or fall behind in the race for the future, or whether we will build these vehicles and the batteries that are in here in the US or rely on other countries,” said Biden.

According to a White House factsheet, he has ruled out consumer incentives for high-priced luxury electric models as he advocates dramatic government spending to get Americans to buy electric vehicles while previewing Ford’s new EV version of its best-selling F-. 150 pickup.

Biden’s electric vehicle plan, first announced on March 31, cheered investors who bought stakes in several electric vehicle startups that have been struggling recently. Electric vehicle maker Lordstown Motors (RIDE.O) shares rose 22% and Nikola Motors (NKLA.O) shares rose 5.8% in midday trading.

Biden is pushing for electric vehicles in the heartland of the auto industry and trying to attract auto workers because he fears that more electric cars and trucks will mean fewer jobs.

The White House wants to promote new manufacturing facilities for batteries, which are vital to expanding U.S. electric vehicle manufacturing.

Biden’s plan “provides cost-sharing grants to support new high-capacity battery systems in the United States,” the fact sheet reads, and supports grants to fund the conversion of shuttered factories “to build advanced vehicles and parts.”

United Auto Workers President Rory Gamble, who has criticized Ford and General Motors’ plans to build some electric vehicles in Mexico, urged Biden to ensure that investment fosters strong labor standards, good union jobs and US-built vehicles.

At the heart of Biden’s EV plan is $ 100 billion in consumer discounts. This emerges from an April email from the U.S. Department of Transportation to lawmakers. Continue reading

The White House fact sheet states that Biden’s plan “provides incentives for outlets that promote the use of electric vehicles. These incentives are not used on expensive luxury models.”

The existing $ 7,500 electric vehicle tax credit applies to vehicles regardless of price, but expires after a manufacturer sells 200,000 electric vehicles. The credits for Tesla (TSLA.O) and General Motors (GM.N) expired after they hit the cap.

The White House has refused to say how Biden would like to restructure electric vehicle tax credits or whether it would like to increase tax credits.

Biden encounters opposition from many Congressional Republicans in his EV focus. Republicans will release a counter-proposal to Biden’s infrastructure plan on Tuesday, and Republicans will later meet with Biden’s commercial and transportation chiefs on Capitol Hill. Continue reading

Biden supports new tax credits for zero-emission medium and heavy-duty vehicles that the White House finds “are a significant contributor to poor air quality” and that have an administrative cost of $ 10 billion.

Biden wants $ 15 billion to build 500,000 EV charging stations – including in apartment buildings and public parking lots – and $ 45 billion to electrify significant numbers of school and transit buses by 2030. He would also like to finance the relocation of the federal fleet to more electric vehicles, among other things so that the postal service can use EV delivery vehicles.

Our standards: The Thomson Reuters Trust Principles.

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