President Joe Biden will defend its $ 174 billion electric vehicle plans on Tuesday, asking for government grants for new battery production facilities during a visit to Ford engine electric vehicle plant in michigan.
It will also rule out consumer incentives for high-end electric luxury models, according to White house data sheet as it advocates a dramatic government spending to encourage Americans to buy electric vehicles with a preview of Fordnew EV F-150 van.
Biden is pushing electric vehicles into the heart of the auto industry and trying to win over car workers, worried that more electric cars and trucks with batteries will mean fewer jobs.
The White House wants to encourage new battery production facilities, which are key to increasing the manufacture of American electric vehicles.
Biden’s plan “proposes cost-sharing grants to support new high-capacity battery facilities in the United States,” the fact sheet said, and supports grants to fund the refurbishment of closed factories. build advanced vehicles and parts “.
Rory Gamble, president of United Auto Workers, who has criticized Ford i General Motors plans to build some electric vehicles in Mexico, urged “They want to make sure that investments to boost production and sales of electric vehicles incorporate solid labor standards and ensure that the vehicles of the future support good union jobs. taxpayers should be spent on supporting the construction of U.S. vehicles, not imports. “
The centerpiece of Biden’s EV plan is $ 100 billion in consumer rebates, according to a U.S. Department of Transportation email to lawmakers.
The White House fact sheet says Biden’s plan provides “point-of-sale incentives that encourage the deployment of electric vehicles. These incentives will not go to expensive luxury models and will also encourage manufacturers to use good work practices.” .
The existing $ 7,500 tax credit applies to vehicles regardless of price, but is phased out after a manufacturer sells 200,000 electric vehicles. Credits for both Tesla and General Motors expired after hitting the limit.
The White House has not wanted to say how Biden wants to restructure the tax credits for electric vehicles or whether it wants to increase the credits.
Biden will argue that the United States lags behind China in electric vehicles. “Despite being pioneers in technology, the United States is behind the race to make these vehicles and the batteries they contain,” the White House says.
Biden faces resistance from many Congressional Republicans regarding his EV focus. Republicans will have to post a $ 2.3 trillion infrastructure and work plan counterpart to Biden as early as Tuesday.
Biden endorses new tax credits for medium and heavy-duty vehicles with zero emissions, which the White House notes are “the main contributors to poor air quality” and which the administration considers to have a cost of $ 10 billion.
Biden wants $ 15 billion to build 500,000 electric vehicle charging stations by 2030, including apartment buildings and public parking lots, and $ 45 billion to electrify a significant number of school and traffic buses. It also wants to fund the relocation of the federal fleet to more electric vehicles, including the postal service starting to use electric vehicle delivery trucks.