Biden to announce $900M to build EV charging stations
President Joe Biden will attend the Detroit Auto Show Wednesday and announce the approval of the first $900 million in funding to build electric vehicle charging stations in 35 states as part of the $1 trillion infrastructure bill, the White House said.
Around $5 billion has been set aside by Congress to be doled out to states over the next five years for an EV charging network across the country. Biden has set a goal to make up to 50% of all vehicles sold in the U.S. electric by 2030.
In Detroit, Biden will likely reiterate points made in the White House memo, such as how "Made in America" policies have spurred domestic manufacturing of EVs, chargers and batteries, with companies domestically investing nearly $85 billion into electrification. The Inflation Reduction Act, which was signed into law in August, includes requirements for domestic vehicle and battery production in order for automakers and consumers to qualify for tax credits.
The EV market in the U.S. is projected to grow from $28.24 billion in 2021 to $137.43 billion in 2028, and the federal government is helping to drive that demand under Biden. In December, Biden signed an executive order directing the government to purchase 100% EVs or plug-in hybrid EVs by 2027.
According to the White House, in 2020, less than 1% of new federal acquisitions were electric. In Biden's first year, EV acquisitions more than doubled, and during this fiscal year, agencies have "acquired five times as many EVs as all of last fiscal year."
While the Biden administration is helping to advance the cause of electrification, so far, the government has not put forth a plan to phase out gas-powered vehicles. However, funding the buildout of charging infrastructure should help address a massive hurdle to widespread EV adoption.