WASHINGTON (dpa-AFX) - The government announced a $5 billion package to push the EV industry. The allocated money will be spent over five years in building infrastructure and making EVs, according to reports. The plan is a part of the $1 trillion infrastructure bill passed by Congress in November 2021.
The Biden administration had shown interest in the EV industry as it summoned some of the major automakers to a meeting last year. Now, the government is putting the plan into motion. The federal government will spend $615 million to build a charging station every 50 miles on the interstate highway and has asked state governments to submit the plans by fall.
The money will be divided between the states according to the plans submitted and the infrastructure will have to meet the Department of Transportation requirements. The charging stations will have to be equipped with four charging docks where vehicles will be charged within an hour. According to reports, it will take significant private investments, despite the federal plan, to reach the 500,000 charging station milestone by 2030, as the President had promised.
Pete Buttigieg, the secretary of transportation, said, 'A century ago, America ushered in the modern automotive era; now America must lead the electric vehicle revolution.' In his presentation, Buttigieg also persuaded the rural combustion engine drivers to make the jump to EVs.
'Many might think of them as a luxury item. The reality is nobody benefits more from EVs in principle than those who drive the longest distances, often our rural Americans,' added the former mayor of South Bend, Indiana. The administration's goal is to bring the vehicles sales to 50% electric by 2030, from its current rate of 3%, and become a zero emission economy by 2050.
The plan will fund $2.5 billion later this year to fill the gaps in the rural areas. The states governments failing to follow the guideline will risk missing out on the fund. As of now, Kentucky is going to receive $10 million, Michigan $16 million, Hawaii $2.6 million, Iowa $51 million, Colorado $57 million and California $384 million for the project.
'It's going to help ensure that America leads the world on electric vehicles. China has been leading the race up to now, but this is about to change,' Biden said this week talking about the current EV trend in the automobile industry.
'Because America is building convenient, reliable, equitable national public charging networks. So wherever you live, charging an electric vehicle will be quick and easy,' added the President.
Copyright(c) 2022 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2022 AFX News
