Within President Joe Biden's $1.7 trillion infrastructure plan is the proposed idea to invest $174 billion into “winning the EV market." This plan is believed to yield a promising future for the already emerging U.S. electric vehicle industry. If it passes Congress, we can expect to see electric vehicles and plug-in hybrid vehicles jump in popularity in the U.S.
There are many ideas laid out in Biden’s infrastructure plan. Here is a list of ways electric vehicle usage will be affected by the plan:
It will boost EV charging networks
Biden has stated that one of his goals within the infrastructure plan is to have a national charging network of about 500,000 chargers spread across the U.S. by 2030. Biden plans to achieve this goal by creating grant and incentive programs for state and local governments to deploy chargers. There has been a large boost in stock prices for companies that own EV charging assets, such as Tesla and ChargePoint.
Transit and school buses will be electrified
The plan also includes an intention to replace 50,000 fuel powered transit vehicles. Through the Clean Buses for Kids Program, there are plans to electrify 20% of the U.S. school bus fleet. The push to electrify transit and school buses is so vital because it saves money for school districts and transit agencies that they would otherwise spend on fuel and maintenance costs. This will also allow them to reduce air pollution for riders.
Domestic EV production will be boosted
Right now, the world’s EV battery market is owned by Asian countries. However, Biden is hoping to increase domestic manufacturing of EV batteries through incentives for automakers. While Obama’s green recovery stimulus plan invested in emerging EV manufacturing companies, Biden plans to invest in scaling up companies and technologies that are already well-established.
Tax incentives for Americans who buy EV
The infrastructure plan states that it will give Americans “point of sale” rebates and tax incentives that will encourage them to buy electric vehicles. Though the cost of EV’s and batteries are dropping, many people still will still need incentives to be swayed into buying electric cars that are more expensive than cars that use gasoline.
Biden’s plan will likely see many tweaks and changes as it passes through congress pending approval. The plan we know of now (early 2021) is merely a draft and has already seen a few modifications as Biden seeks to appease the Republican party. Nonetheless, this plan is still a historic one that has the power to start an EV revolution in the U.S.
As this plan to overhaul the infrastructure of the United States takes shape, the transformation will rely heavily on trade professionals who can supply the labor to achieve these goals. Electricians who are able to install and maintain charging stations will be in demand as well as designers and home builders who incorporate charging effortlessly into their home and work places layouts.
Keep up to date with the changes in workforce demands with trades.org. We will help you determine what the new plan means for you and your business and take advantage of new markets that will be opening as technology advances. Our business is to help your business plan and be prepared for changes to the construction industry so you are ready to meet the needs of your customers.