President Biden, attending the Detroit auto show Wednesday, was scheduled to announce $900 million in U.S. funding for electric vehicle charging stations in 35 states.
Biden promoted the Inflation Reduction Act passed in August that includes tax incentives to buy EVs, and he toured an array of U.S.-made electric, hybrid and combustion vehicles.
The president planned to announce the first $900 million for EV charger development. His 2021 infrastructure legislation provides $5 billion over five years to help states build a network of charging stations.
Meanwhile, the Inflation Reduction Act calls for EVs to be built in North America in order for owners to qualify for a new federal tax credit of as much as $7,500. The vehicles’ batteries must also be made on the continent, and battery minerals must be made or recycled here, all requirements intended to construct a U.S. EV supply chain to end dependence on Asia, particularly China.
The law spurred automakers to acquire compliant parts and materials so that their vehicles are eligible for the credit. Ford and GM ramped up EV production, though both had already planned new EV battery factories in joint ventures with battery makers.
After the act passed, other automakers followed with similar announcements for facilities in North America, though some had been planned for months. EV batteries are heavy, so it’s less expensive to build them stateside due to overseas shipping costs.
Biden has a goal that up to half of vehicles sold in the U.S. be electric by 2030.
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Originally posted on Auto Dealer Today
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