Biden wants automakers’ pledge that 40% of sales will be electricity by 2030

President Joe Biden Drive Ford F-150 Lightning electric pickup. (Reuters)

Washington — The White House is negotiating to make automakers promise that more than 40% of cars sold in the United States will be electric cars by the end of the decade. ..

UAW Spokesman Brian Rosenberg said the union was discussing sales targets with the White House and automakers, but said no agreement had been reached.

Another person familiar with the negotiations confirmed that negotiations were underway on EV sales targets, but said there was no agreement and the negotiations were still in the early stages.Pledge New car Sales are important as some U.S. automakers have promised to convert their model lineup to Electric car, They make no promises about volume.

Automakers are seeking government support to reach these goals, including subsidies and financing to charge infrastructure, such as those included in the bill currently passing the Senate.

Representatives of the White House and car maker Stellantis declined to comment. GM“There is no agreement to comment at this time,” he said in a statement.The talks were previously reported Washington post..

“”Ford Already, we are leading the electrification revolution, saying we plan to make at least 40% of the world’s vehicles all-electric by 2030, “said Ford Motor Company spokeswoman Melissa. Miller said in an email. CEO “Jim Farley said on Wednesday that customer reaction to EVs has so far exceeded our expectations. We intend to anticipate customer demand.”

The deal with the automaker could help build support for the $ 550 billion bipartisan infrastructure deal that passed procedural hurdles in the Senate this week. The bill will invest $ 7.5 billion to help build a nationwide network of EV chargers. This is almost double all previous public spending by utilities, states, and the federal government at these critical charging points.

The White House didn’t say how many charging stations the money would pay, but said the money was “the first national investment in EV charging infrastructure in the United States.”

But it’s still only a fraction of the $ 87 billion that analysts and environmentalists say will be needed in the last decade to quickly electrify a country’s cars. truck It requires reliable access to the electronics.

“In context, this is a big investment, but it’s a down payment when compared to the amount actually needed to achieve 100% electrification,” said Nick Nigro, founder of. Atlas Public policy, a research company that analyzes the EV market.

Ryan Gallentine, policy director of Advanced Energy Economy, a group that supports larger electrification, called the Senate spending measures to strengthen EV plans for automakers a “good start.”

According to Gallentine, installing charging stations in many places requires upgrading power transmission and other systems to support them.

“There are many factors involved in the number of chargers available,” says Gallentine. “The state needs to look at the amount of money it’s trying to get from this package and decide how it wants to spend it.”

Important steps towards climate goals

The rapid deployment of EV charging stations is considered important to building consumer support for cars and achieving President Joe Biden’s goal of halving US greenhouse gases. Emissions By the end of 10 years.

Automakers are also working to increase tax credits for electric vehicles, which are currently worth as much as $ 7,500. Tesla Inc. and GM have already exceeded the 200,000 cap per manufacturer, where the value of these credits will gradually decline.

More charging infrastructure is urgently needed as EV sales break monthly records and analysts predict that these plug-in cars will reach nearly 70% of the passenger car market by 2040. , Said Nigro of the Atlas Policy Group.

“There is a growing need for more and more infrastructure to meet that demand,” he said. “And it takes an order of magnitude more infrastructure to actually approach the level of EV market share that many states are currently targeting.”

In March, Biden urged Congress to invest $ 174 billion in electric vehicles. This includes setting up a network of 500,000 chargers nationwide. When lawmakers discussed the details of their spending, the administration demanded $ 15 billion, and some senators demanded $ 2.5 billion.

$ 7.5 billion for charging stations

EV charging spending on infrastructure transactions developed by the Senator’s bipartisan working group is $ 7.5 billion, reflecting a neutral position.

Although the legislative language wasn’t immediately available on Thursday, Bracewell LLP principal Liam Donovan said the measure would be subject to a ground transport bill approved by the Senate Environmental Public Works Commission earlier this year. He said it is likely to be modeled on the basis.

That bill sets up a grant program for Alternative fuel Corridor and community grants aimed at strategically deploying EV chargers and other public infrastructure. States, local governments, Indian tribes, and other organizations can seek grants, and recipients can use the money to contract with private companies, set up the system, and pay the operating costs for the first five years. can.

According to Atlas figures, the planned program will reduce the $ 1.25 billion that state and federal governments have invested in charging electric vehicles so far. This includes approximately $ 400 million under the American Recovery and Reinvestment Act of 2009. It also exceeds the $ 2.7 billion of utility-approved electric vehicle charging investments that Atlas is tracking.

Biden wants automakers’ pledge that 40% of sales will be electricity by 2030

Source link Biden wants automakers’ pledge that 40% of sales will be electricity by 2030

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