DETROIT, Sept 14 (Reuters) – President Joe Biden took a victory lap on Wednesday at the Detroit auto show as he highlighted automakers’ push into electric vehicles, including investing billions of dollars in battery factories, thanks to new government support. Self-proclaimed “car guy” Biden climbed into a silver Cadillac electric SUV and an orange Corvette, cheered on industry unionists and said the city, the birthplace of the auto industry, is coming back. Detroit’s auto show is North America’s largest and a key stop on Democrat Biden’s stepped-up travel agenda in the midterm elections as he unveils new laws to fund infrastructure and provide consumer subsidies to buy electric vehicles. Sign up now for FREE unlimited access to Reuters.comSign up “We choose to build a better America, an America that tackles the climate crisis, with America’s workers leading the way,” Biden said in a speech on the show. The president was introduced by local auto worker Ryan Buhalski, who said the president was “kicking ass for the working class.” Biden announced the approval of the first US funding of $900 million to build EV charging stations in 35 states, part of a $1 trillion infrastructure law passed last November. While serving as vice president in the Obama administration, Biden attended the Detroit auto show as a strong supporter of the 2008-09 bailouts of General Motors Co ( GM.N ) and Chrysler, which is now part of Stellantis NV ( STLA. MI ). Now Detroit’s big three automakers — GM, Ford Motor Co ( FN ) and Chrysler — are showing off new electric vehicles at the auto show as Congress and Biden pledge tens of billions of dollars in loans, tax credits and grants to build and consumers to accelerate the transition from internal combustion vehicles to cleaner EVs. The “great American Road Trip will be fully electrified,” Biden said. US President Joe Biden is helped out of an electric Chevrolet Corvette Z06 by General Motors Chairman Mark Reuss as GM CEO Mary Barra looks on during a visit to the Detroit Auto Show to highlight electric vehicle manufacturing in America, in Detroit, Michigan, U.S., September 14, 2022. REUTERS/Kevin Lamarque read more In August 2021, Biden set a target for EVs or plug-in hybrid vehicles to account for 50% of all new vehicle sales in the US by 2030. The Detroit Three support the non-binding 50% target, but Tesla Inc ( TSLA.O ) dominates the U.S. electric vehicle market and outsells Detroit automakers combined with EVs. Electric vehicle sales in the U.S. grew 83 percent last year, but they represent a meager 3 percent of the market, and gasoline-powered trucks were well represented in the report.
NEW EV FACTORY
White House National Climate Adviser Ali Zaidi told Reuters that automakers and battery companies have announced “$13 billion in EV manufacturing” in 2022 as they accelerate “the pace of their investment in capital projects here in the United States.” . In July, the U.S. Department of Energy said it planned to lend Ultium Cells LLC, a joint venture of GM and LG Energy Solution ( 373220.KS ), $2.5 billion to help finance the construction of new battery cell manufacturing facilities of lithium ions. Honda Motor Co Ltd ( 7267.T ) recently said it will build a new $4.4 billion lithium-ion battery plant for U.S. electric vehicles with Korean battery supplier LG Energy Solution Ltd. Toyota Motor Corp ( 7203.T ) said it would boost its planned investment in a new U.S. battery plant from $1.29 billion to $3.8 billion. GM and LG Energy Solutions in August started production at their $2.3 billion joint venture battery manufacturing plant in Ohio. The companies are considering a site in New Carlisle, Indiana for a fourth U.S. battery manufacturing plant that is expected to cost about $2.4 billion. “I believe we can own the future of the auto market. I believe we can own the future of manufacturing,” Biden said. “American manufacturing is back. Detroit is back. America is back, and guys, we’re proving that it’s never, ever, ever a good bet to bet against the American people.” Sign up now for FREE unlimited access to Reuters.comSign up Reporting by David Shepardson and Jeff Mason in Detroit and Jarrett Renshaw in Philadelphia Editing by Heather Timmons, David Gregorio and Matthew Lewis Our Standards: The Thomson Reuters Trust Principles.
