Biden to pitch his $174 billion electric vehicle plan in Michigan
Send a link to a friend
[May 18, 2021] By
David Shepardson and Nandita Bose
WASHINGTON (Reuters) - President Joe Biden
will make the case for his $174 billion electric vehicle plan on
Tuesday, calling for government grants for new battery production
facilities during a visit to a Ford Motor electric vehicle plant in
Michigan.
He will also rule out consumer incentives for high-priced electric
luxury models, according to a White House fact sheet reviewed by
Reuters, as he argues for dramatic government spending to prod Americans
to buy electric vehicles at a preview of Ford's new EV F-150 pickup
truck.
The White House wants to encourage new battery production facilities,
which are key to ramping up U.S. electric vehicle manufacturing.
Biden's plan "proposes cost-sharing grants to support new high capacity
battery facilities in the United States, recognizing that new businesses
may not be able to access tax credits but can pitch in their fair share
as they scale their operations," the previously unreported White House
fact sheet said.
It also backs grants to fund the retooling of shuttered factories "to
build advanced vehicles and parts."
The centerpiece of Biden's EV plan is $100 billion in consumer rebates,
according to an April U.S. Transportation Department email to lawmakers.
The White House fact sheet says Biden's plan provides "point-of-sale
incentives that encourage EV deployment. These incentives will not go
towards expensive luxury models and will also incentivize manufacturers
who use good labor practices."
The existing $7,500 EV tax credit applies to vehicles regardless of
price but phases out after a manufacturer sells 200,000 EVs. Credits for
both Tesla and General Motors expired after they hit the cap.
[to top of second column] |
The charging socket is seen on Ford Motor Co's all-new electric
Mustang Mach-E vehicle during a photo shoot at a studio in Warren,
Michigan, U.S. October 29, 2019. REUTERS/Rebecca Cook
The White House has declined to say how Biden wants EV tax credits restructured
or if he wants to hike credits.
Biden will argue that the United States is falling behind China on EVs. "Despite
pioneering the technology, the United States is behind in the race to
manufacture these vehicles and the batteries that go in them," the White House
says.
Biden faces resistance from many congressional Republicans on his EV focus.
Biden backs new tax credits for zero-emission medium- and heavy-duty vehicles,
which the White House notes "are major contributors to poor air quality" and the
administration pegs as costing $10 billion.
Biden wants $15 billion to build 500,000 EV charging stations by 2030 --
including in apartment buildings and public parking -- and $45 billion to
electrify a significant number of school and transit buses. He also wants to
fund shifting the federal fleet to more EVs, including for the Postal Service to
begin using EV delivery trucks.
(Reporting by David Shepardson and Nandita Bose; editing by Richard Pullin)
[© 2021 Thomson Reuters. All rights
reserved.] Copyright 2021 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content. |