White House Announced More Than $600 million in EV grants

Pushing Ahead

The White House announced $623 million in grants Thursday that will go toward the construction of a national charging network for electric vehicles, or EVs.

Congress approved a $7.5 billion infrastructure package in 2021 — the Infrastructure Investment and Jobs Act — to construct 500,000 public chargers by 2030, a goal set by President Joe Biden to combat climate change.

Where’s the Money Going?

The grant money will fund 47 charging stations across 22 states and Puerto Rico, consisting of 7,500 individual EV ports. In addition to the $623 million, another $312 million will be allocated to construct 11 highway corridors along existing roads to serve as so-called “alternative fuel corridors”.

The Biden administration’s goal calls for EVs to account for at least half of all new car sales by 2030. The limited availability of charging stations has been one of the roadblocks to meeting that goal.

Roadblock

But the EV revolution has hit somewhat of a bumpy road, with manufacturers like General Motors (GM) rolling back plans for electric vehicles based on diminished demand, and rental companies like Hertz (HTZ) selling its EVs due to their higher repair costs.

The White House hopes these new funds can alleviate “range anxiety” — the fear they’ll run out of charge between stations — and make EVs more attractive again. Nearly 8 in 10 Americans cite the lack of charging stations as a reason to not purchase EVs, according to a University of Chicago survey. Perhaps this latest funding will be the spark plug the industry needs.

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