Joe Biden, recently elected 46th president of the United States, has announced a series of policies to achieve net zero emissions by 2050. One area of focus is accelerating electric vehicle adoption.
The comprehensive plan will have a significant effect across the many stakeholders within the EV charging ecosystem, incentivizing consumers; benefiting manufacturers; transforming fleets; increasing the focus on green energy; and providing targets to enhance the EV charging infrastructure
No matter who he targets with incentives, grants, tax breaks, etc. every eMobility industry player will ultimately benefit, simply due to the volume of new electric vehicles on the road. They will see increased opportunities to serve larger EV-based fleets, with further growth potential by fulfilling demand for more EV charge points at home, offices, commercial and municipal sites, on the road, and for multidwelling units.
Focus on the EV Owner
Biden plans to increase existing incentives and tax breaks for consumers to buy electric vehicles. He would like to spread those incentives to lower-income consumers, who have been continuing to buy internal combustion engine (ICE) vehicles because they have traditionally been less expensive. Another part of his plan is to implement a national “cash for clunkers” program, where consumers receive incentives for replacing their ICE vehicles with electric vehicles. He is also seeking to reduce the subsidies on fossil fuels, increasing economic incentives for consumers to transition to electric vehicles.
Biden understands that one of the major issues holding back comprehensive consumer adoption of electric vehicles is range anxiety. Therefore, he is targeting the installation of more than 500,000 charging stations across the United States.
Friend to the Electric Vehicle Manufacturers
As Vice President under Barack Obama, Biden worked closely with General Motors and Chrysler to save 1 million auto industry jobs, so he is already connected to the industry and key players. He wants to leverage those relationships and demand that all clean transportation regulations give priority to vehicles manufactured in the United States, not only personal vehicles but also public transit and fleets. The government will be providing incentives for manufacturers to transform their factories to manufacture both the components for and the electric vehicles themselves.
Fleets Are Going Electric
Fleets electrification is another boon to EV charging operators and service providers. American cities with 100,000 or more residents will be targeted with federal investments for zero-emissions public transit. This would create more business opportunities for eMobility providers targeting fleets, as they will need to build and maintain the infrastructure to ensure effective EV fleet vehicle charging.
Biden also proposes changing government vehicle procurement requirements to accelerate the purchase of electric vehicles for fleets, not only with the federal government, but also with state, postal, and local fleets.
It’s time for eMobility service providers to start their applications to become approved U.S. federal suppliers.
Powering the EV Future
Biden’s focus is on clean and green, ensuring that energy production further embraces renewables. He’s also going to be investing government R&D dollars into developing battery technologies to store solar and wind energy as well as power electric vehicles, creating a complete circle of vehicle to grid technology.
Bottom line, Biden’s strategy to create a sustainable and modern infrastructure and a green energy future will eventually create considerable business opportunities for all EV industry players in the US.