President Biden Visits Ford Motor Co to Promote His $174 Billion Electric Vehicle Plan, Checks Out the F-150 Lightning Ahead of its Unveiling
President Joe Biden traveled to Michigan today to meet with executives from the Ford Motor Co and to promote his $174 billion electric vehicle plan, which includes substantial investments in zero-emissions vehicles and EV charging infrastructure in the U.S.
Biden's massive American Jobs Plan includes significant investments in electric vehicle production as a way to fight climate change and position the U.S. as a global leader in the development of green technologies such as battery-powered cars.
A statement released by the White House said that the global auto market is shifting to electric vehicles (EVs) which will lower carbon pollution leading to cleaner air.
As China looks to be a world leader in electric vehicle adoption, the Biden administration acknowledged that the United States is behind the country in the race to manufacture electric vehicles, as well as the battery cells that go in them. For example, U.S. automakers are currently relying on Asian suppliers, including LG Chem, for electric vehicle battery cells.
President Biden speaks on Tuesday during a visit to Ford Motor Co in Michigan. (PHOTO: Evan Vucci, Associated Press)
The press statement released by the White House on Tuesday said the U.S. market share of plug-in electric vehicle (EV) sales is only one-third that of the Chinese EV market. China had approximately 800,000 public charging points open in 2020 compared to just 100,000 in the U.S. Biden believes it's time for this to change.
The American Jobs Plan will establish grant and incentive programs for state and local governments, as well as the private sector to build a national network of 500,000 EV chargers by 2030.
To build a nationwide network of EV charging stations, the plan calls for a $15 billion investment to spur the manufacturing and installation of EV chargers. It will fund charger installations in apartment buildings, in public parking garages, and throughout communities It includes installing a network of fast charging locations along major highways in the U.S.
The American Jobs Plan is also designed to help the U.S. to lead in EV manufacturing, infrastructure, deployment, and innovation.
"The American Jobs Plan will position America to win the future of transportation and manufacturing with once-in-a-generation investments that will strengthen our ability to create good-paying, union jobs, dramatically expand American manufacturing, make EVs more affordable for families, and ship EVs and their parts around the world," the statement said.
President Biden believes the massive investments will ensure that the U.S. will manufacture the next generation of vehicles and lead the world in EV and battery innovation, creating economic growth for decades.
To achieve that goal, Biden believes the American Jobs Plan will accelerate the EV industry in the U.S. by driving demand for advanced cars and trucks, reinvigorating the automotive sector and battery manufacturing capabilities, fund the deployment of a national network of EV chargers, and advance innovation for the next generation of technology.
Driving Demand for EVs in the U.S.
The American Jobs Plan will create incentives to continue to lower the cost of electric vehicles in order to boost adoption. These incentives are a policy to support the growing market for electric vehicles, which then drives down prices as the auto industry scales up production.
The plan also includes consumer incentives for purchasing electric vehicles to boost adoption. It calls for $100 billion in new consumer rebates, according to a U.S. Transportation Department email that was sent to congressional staff and viewed by Reuters. These incentives however will not go towards high-end and expensive luxury models.
The Biden administration is also proposing to offer incentives to manufacturers who use sound labor practices, such as employing UAW union members. Biden is a strong supporter of the UAW. The incentives are designed to provide encouragement for automakers to build and sell more EVs.
Biden also plans to offer new tax credits for zero-emission medium- and heavy-duty vehicles in order to support the market for electric and fuel cell trucks and other heavy vehicles.
On Tuesday, Biden visited Ford Motor Co.'s electric vehicle plant known as the Ford Rouge Electric Vehicle Center, where the F-150 Lightning will be built.
While visiting Ford in Dearborn, President Biden also got a sneak peak and a test drive in the Ford F150 Lightning electric pickup truck ahead of its global reveal on Wednesday evening.
"The future of the auto industry is electric. There's no turning back," Mr. Biden said in remarks from Ford's EV factory on Tuesday.
The American Jobs Plan is part of Biden's massive $2 trillion infrastructure proposal to rebuild and upgrade roads, bridges and more in the U.S. The proposal would be paid for with tax increases on corporations. To start, President Biden wants to raise the main tax on corporations to 28%, up from 21% where it is now.
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