President Biden announces $900M for EV charging stations
President Biden, a gearhead with his own vintage Corvette has showcased his administration’s efforts to promote electric vehicles during a visit Wednesday to the Detroit auto show, where he announced hundreds of millions of dollars to build roughly 500,000 charging stations across dozens of states.
Mr. Biden arrived at the massive North American International Auto Show to plug the huge new climate, tax and health care law that offers tax incentives for buying electric vehicles. He toured a mix of American-manufactured hybrid, electric and combustion vehicles from Chevrolet, General Motors, Ford, and Stellantis on a closed-off convention center floor, and greeted union workers, CEOs, and local leaders.
While Mr. Biden has been taking credit for the recent boom in electric vehicle battery and assembly plant announcements, most were in the works long before the Inflation Reduction Act was signed into law on Aug. 16. Mr. Biden’s 2021 infrastructure legislation could have something to do with it — it provides $5 billion over five years to help states create a network of EV charging stations.
In Detroit, Mr. Biden announced approval of the first $900 million in infrastructure money to build EV chargers across 53,000 miles of the national highway system and 35 states.
“The great American road trip is going to be fully electrified. Whether you’re driving coast to coast along I-10, or on I-75 here in Michigan, charging stations will be up and as easy to find as gas stations are now,” the president said in remarks to a crowd of autoworkers and supporters.
Under the law, electric vehicles must be built in North America to be eligible for a new federal tax credit of up to $7,500. Batteries for qualifying vehicles also must be made in North America, and there are requirements for battery minerals to be produced or recycled on the continent. The credits are aimed at creating a U.S. electric vehicle supply chain and ending dependence on other countries, mainly China.
Passage of the measure set off a scramble by automakers to speed up efforts to find North American-made batteries and battery minerals from the U.S., Canada or Mexico to make sure EVs are eligible for the credit.
In April, Ford started building electric pickup trucks at a new Michigan factory. General Motors has revamped an old factory in Detroit to make electric Hummers and pickups.
Long before legislators reached a compromise on the legislation, each company announced three EV battery factories, all joint ventures with battery makers. A GM battery plant in Warren, Ohio, has already started manufacturing. A government loan announced in July will help GM build its battery factories.
Ford said last September it would build the next generation of electric pickups at a plant in Tennessee, and GM has announced EV assembly plants in Lansing, Michigan; Spring Hill, Tennessee; and Orion Township, Michigan. In May, Stellantis, formerly Fiat Chrysler, said it would build another joint venture battery factory in Indiana, and it has announced a battery plant in Canada.
Hyundai announced battery and assembly plants in May to be built in Georgia, and Vietnamese automaker VinFast announced factories in North Carolina in July. Honda and Toyota both announced U.S. battery plants after the act was passed, but they had been planned for months.
Mr. Biden has been talking for a long time about the importance of building a domestic EV supply chain and that may have prodded some of the companies to locate factories in the U.S. But it’s also advantageous to build batteries near where EVs will be assembled because the batteries are heavy and costly to ship from overseas.
And auto companies are rolling out more affordable electric options even despite battery costs. The latest came last week from General Motors, a Chevrolet Equinox small SUV. It has a starting price around $30,000 and a range-per-charge of 250 miles. Buyers can get range of 300 miles if they pay more.
The Equinox checks the North American assembly box. It will be made in Mexico. The company won’t say where the battery will be made but it is working on meeting the other criteria for getting the tax credit.