Only a week into his administration, Joe Biden seems to have adopted something of an “America First” policy. But unlike with the previous administration, it doesn’t have anything to do with foreign relations or diplomacy.
Instead, Biden wants to put America first in regards to manufacturing and energy policy. Earlier this week, he announced a plan to replace the U.S. government’s vehicle fleet with electric vehicles.
“The federal government also owns an enormous fleet of vehicles, which we’re going to replace with clean electric vehicles made right here in America made by American workers,” he said in his statement.
It’s a massive undertaking to be sure, but one that falls in line with wider trends and opens up all kinds of investment opportunities. It’s something that’s bound to happen eventually — it’s just a question of exactly how it’s going to play out.
The Numbers Don’t Lie
According to early estimates, the U.S. government owns somewhere in the neighborhood of 650,000 vehicles. Replacing them with electric alternatives would cost around $20 billion.
The idea is that the entire thing would create 1 million new jobs in the “American auto industry, domestic auto supply chains, and auto infrastructure, from parts to materials to electric vehicle charging stations.” This would include building 550,000 charging stations and providing money for clean energy research. President Biden’s policy also calls for closing of loopholes that allow for cars to be considered U.S.-made even when key components — engines, steel, glass, and so on — are manufactured outside the country.
If it plays out the way he hopes it will, it will no doubt put Americans to work at a time when they need it. Vehicles need to be built, infrastructure needs to be installed, and all of that needs to be maintained and expanded over time. While Biden’s plans start with the federal government, the everyday American would eventually be affected.
Go back to the distant year of 2009 and you may recall the Obama administration’s “Cash for Clunkers” program. This was a program that had people trade old vehicles for newer, more fuel-efficient machines.
That cost more than it brought in, but it also decreased emissions and increased the average fuel economy of cars in the country.
In July of last year, Biden made his plans for shifting to electric vehicles known and included plans for a program similar to what we saw in 2009. While he didn’t speak on that plan earlier this week, it shows what he has in mind as far as changing how Americans drive over the next few years and decades.
Worldwide, electric cars topped 2.1 million units in sales in 2019. This boosted global numbers to 7.2 million total. Countries all over are setting policies in place to have 100% zero-emission targets. France intends to be there by 2040, and Japan’s government recently said all new vehicles sold in the county will be hybrid or electric by the mid-2030s. There are no policies like that in place in the U.S. yet, but it’s most likely being discussed.
All of this is good news for car companies and any businesses that deal in electric vehicles. Over the past few years, the trend has been one of companies introducing electric vehicles to their lineups as the technology becomes more affordable and more widespread.
We already have giants like Tesla dominating the market, but everyone is going after their share. That means that the battery technology most people associate with electric vehicles won’t be the only option as we say goodbye to combustion engines.
The Little-Known Opportunity
With electric vehicles set to become more prevalent, one company is carving its own path using hydrogen fuel cell technology. It’s already got a foothold in the all-important American trucking industry, and the benefits there have the attention of big-name companies like Toyota and Hyundai.
Jimmy Mengel has the entire story, and it’s one that not many people know about.
That means you have the opportunity to get in on a growing industry now, before it really begins to take off.
Learn the details and see why this is one to watch over the next few years.
