— Washington President Biden, a car enthusiast with his own vintage Corvette, highlighted his administration’s efforts to promote electric vehicles during a visit to the Detroit auto show on Wednesday, where he announced hundreds of millions of dollars to build approximately 500,000 charging stations across dozens of states.
Mr. Biden attended the enormous North American International Auto Show to promote the large new climate, tax, and health care package that provides tax advantages for the purchase of electric automobiles. On a closed-off convention center floor, he toured hybrid, electric, and combustion automobiles from Chevrolet, General Motors, Ford, and Stellantis while greeting union workers, CEOs, and local leaders.
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 announced in Detroit the first $900 million in infrastructure funding for the construction of electric vehicle (EV) chargers over 53,000 miles of the national highway system and 35 states.
“The classic American road trip will be electrified in its entirety. On I-10 from coast to coast or on I-75 here in Michigan, charging stations will be installed and as easy to locate as gas stations are presently “The president stated in a speech.
President Biden is shown a Chevrolet Silverado EV by General Motors CEO Mary Barra on September 14, 2022, during a visit to the Detroit Auto Show. KEVIN LAMARQUE / REUTERS
Electric vehicles must be manufactured in North America to qualify for a new federal tax credit of up to $7,500. Batteries for eligible vehicles must also be manufactured 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 government financing approved in July will aid in the construction of GM’s 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, stated 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 passed, although they had been in the works for months.
Mr. Biden has long emphasized the time of establishing a domestic EV supply chain, which may have prompted some corporations to locate plants in the United States. However, it is also advantageous to manufacture batteries close to where EVs will be assembled, as batteries are heavy and expensive to ship from abroad.
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 manufactured in Mexico. The company would not disclose where the battery will be manufactured, but it is striving to meet the other requirements for the tax credit.
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