President Biden wants to promote the manufacture and purchase of electric vehicles (EVs). Here’s how his plan could help the environment and the economy.
When President Joe Biden took office in 2020, he pledged to address the climate crisis by promoting the manufacture and purchase of electric vehicles. His goal? For EVs to comprise half of all cars sold in the United States by 2030.
To meet this ambitious target, President Biden wants to incentivize domestic production of EVs, chargers and batteries. Or, to quote the White House, to “create jobs, make more in America and fight climate change while advancing environmental justice.”
So how are things progressing? Let’s take a closer look at the president’s strategy and its impact.
the plan in action
Don’t bother scanning the statute books for anything resembling an Electric Vehicles Act. Instead, President Biden has advanced his EV agenda through a series of broad-based laws and initiatives, some of which have received bipartisan support. These include:
the infrastructure, investment and jobs act
The IIJA includes a $7.5 billion investment to build a national network of 500,000 EV chargers, helping drivers of electric vehicles to get from A to B. In addition, it includes more than $7 billion to provide manufacturers with the minerals and other components necessary to create EV batteries. The measure also targets public transportation, allotting more than $10 billion for clean transit and school buses.
In September, the Biden-Harris Administration approved the first 35 state plans under this law, which will release more than $900 million in funding to build EV chargers across approximately 53,000 miles of highway nationwide.
inflation reduction act
Designed to encourage both the sale and manufacture of EVs, this law incentivizes buyers to purchase both new and used electric vehicles, extending a tax credit of up to $7,500 per vehicle through 2032. The act also provides tax credits and deductions to help manufacturers redesign and retool facilities to produce EVs. These incentives should fuel engineering job growth in the manufacturing and construction sectors.
The goal of both these measures is to increase the availability of electric vehicles, reduce the cost of ownership and create a broader customer base. Finally, the law will provide grants for zero-emission heavy-duty vehicles.
CHIPS and science act
Semiconductors are a critical part of the EV manufacturing process. The CHIPS and Science Act provides investments and incentives to develop domestic infrastructure and capacity for their production.
more vehicle styles
Through his plan, President Biden is encouraging manufacturers to produce more types of EVs. As it stands, many electric vehicles are sedans or coupes, but the president hopes to encourage the production of trucks, SUVs and other styles to cover the full spectrum of consumer preferences.
results so far
Halfway through its term, the Biden administration has notched up several wins in the battle to get more EVs on the roads. Let’s review the score card so far
- nearly $85 billion invested in the production of electric vehicles, batteries and EV chargers in the United States
- increased investment in EVs — companies have announced $13 billion in domestic EV manufacturing, more than triple the amount invested in 2020
- increased sales of electric vehicles in the United States — the number sold has tripled since the president took office
Want to learn more about building a team to take on IIJA-funded projects? Download our white paper today to start seizing the opportunities created by this legislation.