Biden Frees Up First Funds For National EV Charging Network

He liked the gasoline-powered Chevrolet Corvette the best, but after his tour of the Detroit Auto Show on Wednesday, President Joe Biden got serious about his administration’s efforts to promote electric vehicles.

After a rousing introduction by UAW Local 598 president Ryan Buchalski generating cheers from the large contingent of union autoworkers in attendance, Biden announced $900 million in grants to build electric vehicle charging stations in 35 states, including Michigan. It’s the first step in an overall $7.5 billion plan to build a half-million recharging stations across the U.S.

“We’re building the future of the electric vehicle,” Biden said.

With a nod to the union-heavy crowd, Biden drew loud cheers and a standing ovation after adding the charging stations would be installed by members of the IBEW, the electrical workers union.

Funding for the charging stations comes from the Bipartisan Infrastructure Law aimed at rebuilding America’s roads, bridges and rails, expanding access to clean drinking water, ensuring every U.S. resident has access to high-speed internet and tackling the climate crisis.

Further support for electric vehicles comes from the Inflation Reduction Act, which provides incentives for buyers of new and used EVs, credits to help manufacturers retool existing facilities and build new manufacturing in the United States, and grants to deploy zero-emission heavy-duty vehicles.

Ahead of his speech, Biden spent time checking out vehicles, some electric, at the General MotorsGM
, Ford MotorF
Co. and StellantisSTLA
stands on the floor of the show, which returned after a three-year pause due in large part to the Covid-19 pandemic.

He was met at the GM stand by CEO and chair Mary Barra and GM president Mark Reuss. He was quickly drawn to the 2023 Chevrolet Corvette Z06 and promptly got in the driver’s seat. Biden has a longstanding affection for Corvettes and owns one.

The president was also shown GM’s portfolio of electric vehicles and drove a short distance in the electric Cadillac Lyriq. He enjoyed that drive but cracked to reporters, “It’s a beautiful car but I like the Corvette.”

Biden continued his tour looking at the 2022 Electric Ford E-Transit utility van, then greeted Stellantis CEO Carlos Tavares. He first walked up on a pedestal to look at the Grand Cherokee then slid into the driver’s seat.

But clearly, the emphasis on the president’s trip was on electric vehicles and promoting their adoption by Americans, many of whom are still very much reluctant to make the switch from internal combustion engine cars and trucks.

Scott Painter, CEO of EV subscription company Autonomy, observed in emailed remarks to Forbes.com, that encouraging the big switch is still very much a challenge for a number of reasons.

“The many ‘big forces’ at work to accelerate the mass adoption of electric vehicles are historic. Rising interest rates, high gas prices, rebates and incentives, historic regulation and massive infrastructure investments are all conflating to accelerate the biggest shift in consumer behavior in human history.

“The core barriers to EV adoption are affordability, battery life and charging infrastructure and the administration is tackling all of them. Convenient access to charging stations is the foundation. Americans will soon see charging stations getting built with their own eyes, in their own neighborhoods which will build confidence and momentum for going electric,” wrote Painter. “EVs still cost 20%-40% more than their ICE counterpart, so affordability will need to be further contemplated. We expect to see car subscriptions and other models such as car-sharing become more prevalent to help address affordability.”

The U.S. ranks third from last globally in sales of battery and plug-in hybrid electric light vehicles, according to a study presented at this week’s Battery Show in suburban Detroit by EV Volumes.

Among 25 countries, the U.S. ranked 23 with sales of BEV and PHEV between January and July accounting for about 7% of the market, said EV Volumes sales director and analyst Viktor Irle.

That’s compared with leader Norway where BEVs and PHEVs together captured 75% of the market, with battery electric vehicles accounting for almost 70%.

Irle predicted electric vehicles would account for 14% of the global vehicle market by the end of this year and grow to more than 60% by 2035.

Despite his love for the sound and feel of his beloved Corvette, America’s self-titled “car guy” said he and his administration are committed to making it easy for this country’s drivers to eventually go all-in on battery electric vehicles declaring, “The great American road trip is going to be electrified.”