— Washington President Biden, a car enthusiast with his own vintage Corvette, will highlight his administration’s efforts to encourage electric vehicles during a visit to the Detroit auto show on Wednesday, where he will unveil hundreds of millions of dollars to build charging stations in dozens of states.
During his stop in Detroit on Wednesday, the Democratic president, who recently drove his pine-green 1967 Stingray with Jay Leno for an episode of “Jay Leno’s Garage” on CNBC, may have the opportunity to test-drive a new vehicle. As president, he no longer has many opportunities to drive; he is not permitted to drive on public highways.
He is primarily attending the North American International Auto Show to promote the massive new climate, tax, and health care package that provides tax benefits for the purchase of electric vehicles.
While Mr. Biden has been claiming credit for the recent surge in electric vehicle battery and assembly facility announcements, the vast majority were in the works well before the Aug. 16 signing of the Inflation Reduction Act. It may have something to do with Mr. Biden’s 2021 infrastructure plan, which offers $5 billion over five years to help states build a network of EV charging stations.
Mr. Biden is scheduled to build Detroit to announce the first $900 million in infrastructure funding for the construction of electric vehicle (EV) chargers spanning 53,000 miles of the national highway system and 35 states.
On September 14, 2022, while touring the 2022 North American International Auto Show in Detroit, Michigan, President Biden observes a Chevrolet Corvette Z06. MANDEL NGAN/AFP courtesy of Getty Images
To be eligible for a new federal tax credit of up to $7,500, electric vehicles must be built in North America, per the newest law. Batteries for eligible vehicles must also be made in North America, and battery minerals must be mined or recycled on the continent. The credits are intended to establish a U.S. supply chain for electric vehicles and reduce reliance on China.
To ensure that electric vehicles are eligible for the credit, automakers rushed to find North American-made batteries and battery minerals from the United States, Canada, or Mexico following the bill’s passage.
In April, Ford began manufacturing electric pickup trucks at a new facility in Michigan. General Motors has renovated an old plant near Detroit in order to manufacture electric Hummers and pickups.
Each corporation announced three EV battery plants, all joint ventures with battery manufacturers, well before legislators found a deal on the legislation. A GM battery plant has already begun production in Warren, Ohio. A federal loan announced in July will build General Motors in building battery facilities.
GM has announced EV assembly sites in Lansing, Michigan; Spring Hill, Tennessee; and Orion Township, Michigan. Ford stated in September 2017 that the next generation of electric trucks would be manufactured in Tennessee. Stellantis, previously Fiat Chrysler, announced in May that it would construct a second joint venture battery facility in Indiana, and it has also announced a battery factory in Canada.
Hyundai announced the construction of battery and assembly plants in Georgia in May, and Vietnamese manufacturer VinFast announced the construction of factories in North Carolina in July. Honda and Toyota both announced battery plants in the United States after the legislation was approved, although they had been in the works for months.
Mr. Biden has long emphasized the need of establishing a local EV supply chain, which may have prompted some companies to locate operations in the United States. However, it is also advantageous to build batteries close to where EVs will be constructed, as batteries are heavy and expensive to ship from outside.
And automakers are introducing more cheap electric vehicle options despite battery costs. Last week, General Motors introduced the Chevrolet Equinox, a compact SUV. It costs approximately $30,000 and has a range per charge of 250 miles. Paid-for range of 300 miles is available to purchasers.
The Equinox meets North American assembly requirements. It’ll be made in Mexico. The company would not disclose where the battery will be made, but it is striving to meet the other requirements for the tax credit.