Biden to pitch his $174 billion electric vehicle plan in Michigan

President Joe Biden will make the case for his $174 billion electric vehicle plan on Tuesday, calling for government grants for new battery production facilities during a visit to a Ford Motor electric vehicle plant in Michigan.

He will also rule out consumer incentives for high-priced electric luxury models, according to a White House fact sheet reviewed by Reuters, as he argues for dramatic government spending to prod Americans to buy electric vehicles at a preview of Ford’s new EV F-150 pickup truck.

The White House wants to encourage new battery production facilities, which are key to ramping up U.S. electric vehicle manufacturing.

Biden’s plan “proposes cost-sharing grants to support new high capacity battery facilities in the United States, recognizing that new businesses may not be able to access tax credits but can pitch in their fair share as they scale their operations,” the previously unreported White House fact sheet said.

U.S. President Joe Biden delivers remarks after a meeting with his COVID-19 Response Team on the coronavirus disease (COVID-19) pandemic and the state of vaccinations, on the White House campus in Washington, U.S., March 29, 2021. REUTERS/Jonathan Ernst/File Photo

It also backs grants to fund the retooling of shuttered factories “to build advanced vehicles and parts.”

The centerpiece of Biden’s EV plan is $100 billion in consumer rebates, according to an April U.S. Transportation Department email to lawmakers.

The White House fact sheet says Biden’s plan provides “point-of-sale incentives that encourage EV deployment. These incentives will not go towards expensive luxury models and will also incentivize manufacturers who use good labor practices.”

The existing $7,500 EV tax credit applies to vehicles regardless of price but phases out after a manufacturer sells 200,000 EVs. Credits for both Tesla and General Motors expired after they hit the cap.

The White House has declined to say how Biden wants EV tax credits restructured or if he wants to hike credits.

Biden will argue that the United States is falling behind China on EVs. “Despite pioneering the technology, the United States is behind in the race to manufacture these vehicles and the batteries that go in them,” the White House says.

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Biden faces resistance from many congressional Republicans on his EV focus.

Biden backs new tax credits for zero-emission medium- and heavy-duty vehicles, which the White House notes “are major contributors to poor air quality” and the administration pegs as costing $10 billion.

Biden wants $15 billion to build 500,000 EV charging stations by 2030 — including in apartment buildings and public parking — and $45 billion to electrify a significant number of school and transit buses. He also wants to fund shifting the federal fleet to more EVs, including for the Postal Service to begin using EV delivery trucks.

(Reporting by David Shepardson and Nandita Bose; editing by Richard Pullin)