U.S. Treasury Secretary Janet Yellen testifies on the “Financial Stability Oversight Board Annual Report” at a hearing of the House Financial Services Committee on Capitol Hill in Washington, U.S., on February 6, 2024.
Amanda Andrade-Rhodes | Amanda Andrade-Rhodes Reuters
U.S. Treasury Secretary Janet Yellen on Wednesday praised President Joe Biden’s investment in electric vehicles for accelerating the growth of the industry even as it cools from a multi-year boom.
Yellen touts Biden’s actions on electric vehicles kentucky Battery supplier Advanced Nano Parts is building a new $49 million electric vehicle battery factory that will receive tax credits from Biden’s inflation-cutting bill for new clean energy facilities.
“This is part of a boom in electric vehicle-related investment in Kentucky,” Yellen said. “The Biden administration’s policies and federal funding are driving private sector investment.”
The minister’s optimism about electric vehicles comes as the private sector softens its stance on all-electric vehicles.
According to a recent CNBC report, major automakers are eager to set deadlines for the transition to all-electric vehicles, such as Ford and General Motorsare now lowering their expectations and shifting to more of a wait-and-see approach rather than adhering to strict EV conversion timetables.
Investors were initially excited about electric vehicles in part because of cheap money from low interest rates, as well as Biden’s Individual Retirement Accounts (IRAs), which provide tax benefits to consumers who buy all-electric vehicles and the companies that make them credit.
“The great American road trip will be completely electrified,” Biden said optimistically at an event in Michigan in September 2022.
However, building EV charging infrastructure has been slower than expected.
And consumer demand for cars has not kept pace with initial expectations.
Biden is now also reportedly slowing down his electric vehicle goals.
Milwaukee Department of Public Works crews install a sign near the Boys & Girls Club of Pieper Hill where President Joe Biden is scheduled to speak late in the afternoon on March 13, 2024, in Milwaukee, Wisconsin. After visiting Milwaukee, Biden is scheduled to visit Saginaw, Miss., on Thursday.
Scott Olson | Getty Images
President describes his electric vehicle investments, aims to 2030.
As part of this schedule, Environmental Protection Agency The most ambitious limits on greenhouse gas emissions from cars were proposed last April, requiring electric vehicles to account for a majority of the car market by 2032.
Officials are now adjusting those rules to more gradually increase electric vehicle production, which would extend the emissions reduction timeline to about 2055. New York Times Reported in February.
As the November presidential election approaches, Biden’s aggressive push for electric vehicles has become a political liability in some ways.
In January, Biden won an endorsement from the United Auto Workers union, which worries the transition to electric vehicles will leave autoworkers behind.
As the self-proclaimed “most pro-union president in American history,” Biden has had to reckon with the tension between his electric vehicle goals and labor positions.
Biden’s opponent, former President Trump, repeatedly attacked Biden’s all-electric goals during the campaign.
“The new green scam…all the electric car craziness and so much more is trying to destroy our once great America,” Trump, a Republican, wrote on social media on Christmas Day.
– CNBC’s Michael Weiland contributed to this report.
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