Joe Biden Vetoes Republican Measure
On Jan. 24, it was announced that U.S. President Joe Biden vetoed a bill brought forth by Republicans to block a White House waiver.
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Had it gone through, it would have restricted the use of foreign materials in the construction of U.S. EV charging stations built using taxpayers’ money (via The Associated Press).
U.S. President Aims to Avoid Harming Jobs
When speaking about his decision to veto the proposal brought forth by the GOP, Biden said it could have harmed the EV industry.
Source: Freepik
It “would eliminate the domestic manufacturing requirement for electric vehicle chargers, thereby harming domestic manufacturing and American jobs,’’ said Biden.
Republicans Strongly Oppose Biden's Decision
Biden’s decision caused great controversy among Republicans and other prominent figures in the electric vehicle industry, including Elon Musk.
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Elon Musk warned the decision to veto the GOP proposal could have severe consequences for the American EV sector.
GOP Try to Overturn 'Buy America'
U.S. Sen. Marco Rubio and a team of lawmakers created a resolution to overturn the Department of Transportation’s “Buy America” requirements.
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Many argue the restrictions favor Chinese manufacturers and suppliers in the EV sector.
The 'Buy America' Policy
If Biden’s veto stands, the 2023 policy, which requires FHWA-funded EV chargers to be made in the U.S., will continue.
Source: Freepik
However, starting July 1, 2024, only 55% of the cost of components for the electric vehicle charging stations must be sourced in America, per Engineering News-Record.
Backers of the GOP Bill Speak Out
According to many of the Republicans who supported the vetoed bill, the door is now open to allow manufacturers to use American taxpayer’s money on Chinese parts.
Source: Freepik
Many Republicans argue the electric vehicle charging station infrastructure should be built using solely American parts and manufacturing.
Marco Rubio Calls Out Biden
Sen. Rubio, who played a significant role in the creation of the vetoed bill, argued the Biden policy “hurts American companies and empowers foreign adversaries, like China, to control our energy infrastructure.”
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He continued, “We should never use American dollars to subsidize Chinese-made products.”
Build American Stations with American Materials
Sen. Rubio expressed his desire to see the use of American components and manufacturing in the construction of EV charging stations.
Source: Freepik
“If we’re going to spend $5 billion of taxpayer money to build electric vehicle charging stations for the United States, it should be made by Americans in America using American products,” said Sen. Rubio, per The Associated Press.
Biden Stands Strong in Decision
When speaking during a press conference, Biden remained sure of his decision to veto the GOP bill.
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“It would not only thwart the collective goal of the Congress and the administration to establish a domestic EV charger manufacturing industry, but it would also delay the significant progress being made by my Administration and the States in establishing the EV charging network,” said Biden (via MSN).
Elon Musk Warns of Repercussions
Elon Musk, one of many influential figures in the EV industry, warns of potential repercussions due to Biden’s action.
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“If there are no trade barriers established, they will pretty much demolish most other car companies in the world,” he said. “They’re extremely good.”
China’s Grip on the EV Market
Ross Gregory, a partner at Melbourne-based consultant New Electric Partners, also spoke out about the grip China has over the EV sector.
Source: Freepik
“The completeness and resilience of China’s multi-decade state-directed battery materials processing infrastructure build-out is biting hard,” said Ross Gregory (via MSN).