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Obama Administration launches series of actions to accelerate EV adoption; inc. $4.5B in loan guarantees, pursuing 350 kW fast charge

Green Car Congress

Alone, the federal government plans to purchase more than 500 plug-in hybrid electric vehicles (PHEV) or EVs in fiscal year 2017. This will result in a significantly smaller, lighter weight, less expensive battery pack (below $100/kWh) and more affordable EVs. Duke Energy Ohio. Municipal fleet electrification. City of Seattle.

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Proposed Changes to the Federal EV Tax Credit Passed by the House of Representatives

EV Adoption

Probably the most needed and least controversial proposed change is the elimination of the phaseout of the tax cap that begins in the quarter after a manufacturer sells 200,000 BEVs or PHEVs in the US. These lower cost EVs will also come with smaller batteries that produce fewer carbon emissions than their larger counter parts.

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The redesigned federal EV tax credit and other EV-related measures

Charged EVs

Some fear that the new rules will penalize startups such as Lucid and Rivian, which are selling pricey luxury vehicles, presumably as the first phase of an iterative strategy to work their way to more affordable EVs (as Tesla originally planned to do). Lucid’s sedans currently start at over $80,000, and Rivian’s pickups start at $72,500.