Borden Pitzburgh speech, map source: observer network
“The US electric car market has only 1/3 of China, and the President of Biden believes that this situation must be changed.”
On March 31, US President Biden delivered a speech in Pittsburgh, announced a $ 2.25 trillion infrastructure and economic recovery program. On the same day, the White House also published a statement entitled “US Work Plan” and introduced the specific allocation of this fund. The notification said that Bids proposed, in the next 8 years, the US government has invested $ 174 billion to win back the electric car market.
Source: White House Statement US Work Plan (The American Jobs Plan)
The $ 174 billion will be mainly used to strengthen the electric vehicle supply chain, to provide tax discount for consumers to purchase US domestic electric vehicles, funding local governments to install 500,000 electric vehicles in the United States in 2030, complete federal government fleets and nationwide 20% of the goal of “oil exchange electricity” in school bus.
The Biden government proposed that the investment of huge sums of money to improve the competitiveness of electric vehicles, overturned the non-supporting state of electric vehicles during the Trump’s ruling period, but also the continuation and strengthening of electric vehicle policy during the Obama.
The White House statement refers to “China”, which clearly has to exceed China in infrastructure investment, research and development and construction, and electric vehicles are also one of the focus.
This program of more than $ 2 trillion, if you need to implement the consent of Congress, formally implement it to wait until 2022. Biden said that if you are unable to get enough Republican Senator support, he will consider launching the “budget reconciliation program” again, crossing the Republican, directly promoting the legislation.
Charging pile: 100,000 to 500,000
Relevant statistics show that there are about 100,000 electric vehicles in the United States, including 32,000 of them in California.
Insufficient charging infrastructure, which restricts the development of the US electric vehicle market. The report of IHS Markit, in 2020, in the newly registered light vehicle in the United States, the electric vehicle is only 1.8%.
Jonathan Levy, Chief Business Officer of Electric Vehicle Charging Company Evgo, has worked in the US Department of Energy in Obama. According to him, at present, approximately 30% of Americans do not have conditions in their home or in units of charge even if they bought electric vehicles.
In the statement, the White House called the Biden government’s $ 174 billion, some will be used to provide funding awards for local governments and related private agencies, etc., to achieve a network of 500,000 electric vehicles in the United States in the United States in the United States.
Borden Pitzburgh Speech
Another consulting company Arowpartners is expected that by 2030, the United States will have 18 million electric vehicles on the road.
Mark Wakefield, Ai Rui Platinum, said that the current US charging pile industry is definitely requiring government financial support because the car enterprise has no money to build charging infrastructure, and some institutions have some money, but the cost of charging pile is too high, this door Business is still can’t do.
In addition to direct funding, the “Green Act” proposed by Bunden in February this year, the US Department of Energy will be introduced to provide technical support for the area where the charging infrastructure is insufficient and meets the conditions for construction projects.
Strong subsidy limit
The White House statement said that the “US Work Plan” provides tax discount to users who purchase electric vehicles produced in the United States to ensure that all families can buy electric vehicles, but this statement does not express the specific amount and distribution standards for the preferential.
However, in the Green Act, the Biden government said that the Obama administration period purchased each electric car and a maximum of $ 7,500 tax discount, a reduced $ 7,000.
Although the amount of tax rebate is lowered, it is different from the previous subsidy policy to purchase the second-hand electric car, as long as the vehicle purchase is over two years, and the price is less than 25,000 US dollars, it can also get a $ 2500 tax discount.
Biden New Deal on the oldest modifications of old policies lies in that the Obama period, the federal government stipulates 200,000 electric vehicle tax credits to each car manufacturer. Once the number of electric vehicles sold by car companies reaches 200,000, they cannot obtain tax-rate, and Tesla and GM have exceeded this limit.
However, the “Green Act” proposed that 200,000 taxes were increased to 600,000 vehicles. That is, if Biden’s proposal, Tesla and General will receive excess 400,000 sales volume, and continue to receive tax subsidies for the US new government. However, the sales of these two cars have already exceed 200,000, and whether the new regulations have backtracks, they are not sure.
In fact, at the end of 2020, it has announced a winning option, but it has not officially entered the Biden of the White House, put forward a proposal to increase the tax concession. Just, the President Trump, rejected this proposal, and requested thorough cancellation of the tax discount on electric vehicles, saying that this will save $ 2.5 billion for the government within 10 years.
Build build, buy buy
Manufacture of the United States is the core of the Biden government’s 2 trillion US dollars, electric cars are no exception.
The White House statement said that Biden’s plan will stimulate the domestic supply chain of the US electric car manufacturer, including raw materials and other components, and improve global competitiveness through restructuring factories. In addition, this fund will also help American workers produce power batteries and electric vehicles. Strengthening the competitiveness of the United States to make electric vehicles, the Biden government has already proposed it before more than a month.
On February 26th, Biden officially ordered a 100-day review of the possible weak links of the US supply chain, including computer chips, medical equipment, electric vehicle batteries and special minerals in the supply chain.
At that time, the White House made a statement that although the United States is the net exporter of electric cars, it is not a leader in the battery supply chain. Therefore, the United States hopes to expand domestic battery production using the nationally visible lithium reserves and manufacturing technology.
The White House emphasized that the United States has insufficient investment in domestic chips, which has damaged national innovation ability. “We have made mistakes, and other countries have been inspired from our mistakes.”
Make sure after the manufacture of the United States, it is bought to buy.
In addition to purchasing US domestic electric car tax rebates, Biden’s $ 174 billion funds will also be used for federal government vehicles and “oil exchange electricity” plans for some American school bus.
The White House statement said that the Banden government planned to replace the domestic 50,000 diesel transport vehicles as an electric vehicle, and at least 20% of the school bus is replaced with an electric vehicle through the Clean Buses for Kids Program of the Ministry of Environment. At the same time, the federal government also purchases a large number of electric vehicles and completes the electric vehicle replacement plan of the government team.
As early as January 25, that is, the new US president of the United States has signed a “Buy American” administrative order, which will replace the US Post Office with electric vehicles manufactured in the United States (USPS) The federal government car, with a total of approximately 650,000 vehicles.
However, he did not give an alternative time at the time, and the White House did not respond to the “oil exchange power” of such a team. Some analysts pointed out that all government teams replaced with electric vehicles may need to spend 20 billion US dollars or even more.
The 2 trillion US dollars of the Biden government have been within 8 years, and the deadline for the construction of 500,000 charging piles is also scheduled for 2030. Perhaps, the replacement time of the federal government team is also at this time.
In the Pittsburgh speech, Biden said the program (2 trillion US dollars) called the largest employment investment since the Second World War, creating millions of employment opportunities. However, he can make a term of the two presidents to ensure that this is implemented for 8 years of infrastructure planning, but also a question mark.