President Joe Biden, a reducer with his vintage Corvette, will showcase his administration’s efforts to promote electric vehicles during a visit to the Detroit auto show.
The president, who recently took a ride in his 1967 pine-green Stingray with Jay Leno for a segment on CNBC’s “Jay Leno’s Garage,” may have a chance to slip behind the wheel of a new vehicle Wednesday during his Detroit layover. . he no longer has many possibilities in the driver’s seat, he is not allowed to drive on public roads as president.
But mostly he’ll go to the North American International Auto Show to talk about the store, inserting the huge new climate, tax and health care law that offers tax incentives for the purchase of electric vehicles.
Although Biden took credit for the recent boom in electric vehicle battery and assembly plant ads, most were in the works long before the inflation reduction bill was signed into law on August 16. Biden’s 2021 infrastructure legislation may have something to do with this – it provides $ 5 billion over five years to help states create a network of electric vehicle charging stations.
Under the new 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 eligible vehicles must also be manufactured in North America, and there are requirements for the production or recycling of battery minerals on the continent. The credits aim to create an electric vehicle supply chain in the United States and to end dependence on other countries, mainly China.
The passage of the measure triggered a rush by automakers to accelerate efforts to find North American-made batteries and battery minerals from the United States, Canada, or Mexico to make sure EVs are eligible for credit.
In April, Ford began building electric pickup trucks at a new Michigan factory. General Motors renovated an old factory in Detroit to produce Hummers and electric pickups.
Long before lawmakers reached a compromise on the legislation, each company announced three electric vehicle battery factories, all joint ventures with battery makers. A GM battery plant in Warren, Ohio has already begun production. A government loan announced in July will help GM build its battery factories.
Ford said last September that it will build the next generation of electric pickups at a plant in Tennessee and GM announced electric vehicle assembly plants in Lansing, Michigan; Spring Hill, Tennessee; and Orion Township, Michigan. In May, Stellantis, formerly of Fiat Chrysler, said it would build another joint venture battery factory in Indiana and announced a battery plant in Canada.
Hyundai announced construction of battery and assembly plants in Georgia in May and Vietnamese automaker VinFast announced plants in North Carolina in July. Honda and Toyota both announced battery plants in the United States after the act was passed, but they had been planned for months.
Biden has long talked about the importance of building a domestic electric vehicle supply chain and that may have prompted some companies to locate plants in the United States, but it’s also beneficial to build batteries near where the EVs will be assembled because batteries are heavy and expensive to ship from abroad.
And auto companies are rolling out cheaper electric options even despite battery costs. The latest came last week from General Motors, a small Chevrolet Equinox SUV. It has a starting price of around $ 30,000 and a range of 250 miles, or 400 kilometers. Buyers can get a range of 300 miles, or 500 kilometers, if they pay more.
Equinox controls the North American assembly box. It will be produced in Mexico. The company does not say where the battery will be produced, but is working to meet the other criteria for obtaining the tax credit.
Krisher reported from Detroit.