UPDATED. 2024-07-19 07:49 (금)
Biden sets goal for 50% of new US cars to be electric by 2030
Biden sets goal for 50% of new US cars to be electric by 2030
  • Lee Sang Won
  • 승인 2021.08.06 16:07
  • 댓글 0
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US also to enforce stronger emission limits
Image: Jeep
Image: Jeep

US President Joe Biden has set a goal for half of all new US vehicles sales electric by 2030.

The White House on Thursday laid out its plan to tackle climate change by cutting emissions from vehicles.

President Biden signed the executive order with representatives from Ford, GM and Stellantis, and members of the United Auto Workers Union repsent. 

The automakers are supporting Biden's new target, announcing their goal that 40% t0 50% of their cars sold by 2030 to be electric vehicles, according to a joint statement from the three automakers.

The Biden administration also strengthened fuel efficiency standards of cars.

By 2026, fuel efficiency per one gallon of oil must be increased to 52 miles. The previous administration of President Donald Trump had lowed the standard to 42 miles per gallon.

From 2023, new cars will be required to emit 10% less greenhouse gas emissions compared to the previous year, with further reductions of 5% a year mandated until 2026, according to the Environmental Protection Agency the US Transport department.

The move will likely pressure car makers to shift faster to electric vehicles, fuel-cell electric cars and hybrid cars.

The Biden Administration is also planning to expand spending to support electric car infrastructure with US$120 billion __ US$7.5 billion of that is earmarked for the construction electric vehicle charging stations in the US.

Subsidies for electric vehicle purchases will also increase from the previous US$7,500 to US$10,000. Subsidy caps per brands will also increase more.

Eugene Investment & Securities said in a recent report that electric vehicles shipment in the US is expected to reach 7.7 million units in 2030.

For the US to meet its target to have 50% of new vehicles be electric by 2030, electric vehicle shipment needs to increase 40% per year on average, the securities firm noted.

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