President-Elect Joe Biden is a car guy. That’s good news for the electric vehicle industry.
Automakers and EV manufacturers are hoping to benefit from Biden’s proposed $1.7 billion green energy infrastructure plan. His “Build Back Better” economic policy focuses on clean energy and manufacturing. It also aims to provide a boost to the U.S. EV sector. Highlights of Biden’s economic plan include building more charging infrastructure.
He wants to add at least 500,000 more EV charging stations across the country. He also aims to create one million new jobs in the U.S. automotive industry, replace the federal government’s vehicle fleet with EVs (including delivery vans used by the postal service and other federal agencies), and surpass China in the manufacturing of EVs. Biden also pledged to increase EV battery-related research and development.
Out With the Old…
This past July, during a presidential campaign, Biden announced a new “Cash for Clunkers” style plan. It will provide incentives and rebates for American consumers to trade in less efficient gas powered vehicles for EVs that are made in the United States. That’s positive news for domestic companies like Ford, Rivian, Tesla, Lordstown, and General Motors. They are all currently building EVs in the United States.
Switching government fleets to EVs could also be a big win for automakers. Several auto executives have said that implementing EVs at a federal government level will boost investments in the technology.
As for today’s gasoline powered internal-combustion engines, Biden has said he plans to work with state governments on stricter emissions guidelines. That means traditional vehicles will be cleaner but could also become more expensive at some point in the future.
So far, Ford and GM have expressed support for Biden’s plans for the sector. During a call about its battery technology, GM’s Vice President of Electric Programs, Ken Morris, said, “we’re looking forward to working with the Biden administration in support of policies that will foster greater adoption of EVs across all 50 states and encourage investments in R&D and manufacturing.”
The Biden administration is also likely to relax at least some tariffs on international automotive parts. That would be good news for all automakers, since building a vehicle requires a global supply chain. As for rumors that legislators in Washington, D.C. might forcibly replace all older cars with electric vehicles, that’s unlikely. Biden himself owns a 1967 Corvette Stingray convertible and has been known to frequent classic car shows. Electric is the future, but there will still be room for traditional engines too.