West Virginia Democrat Joe Manchin on Thursday blasted a possible expansion of the electric vehicle (EV) tax credit while calling for the development of the hydrogen sector to decarbonize the transportation industry.
Manchin, who called a Biden administration proposal to expand the electric vehicle tax credit program “ridiculous,” said the wait for electric vehicles is already so long that there is no point in offering more money to get consumers to buy a battery-powered one to stimulate cars.
“There’s currently an EV wait list with fuel prices, but they still want us to make a $5,000, $7,000 or $12,000 loan to buy EVs,” he said during a Senate budget hearing on Thursday. Manchin added that electric vehicle production volumes are far from meeting current demand, so offering additional funding to the programs would be ridiculous.
It is evident that EVs are becoming increasingly popular, and with automakers still working towards producing and selling 1 million electric powertrains per year in almost all EV-related situations, demand is outweighing current production metrics. However, companies are pouring staggering amounts of money into EV development, while smaller, EV-focused companies are ramping up production. Tesla will produce at least 1 million vehicles worldwide this year after narrowly missing the mark in 2021. Many forecasts put the company producing at least 1.5 million vehicles this year, but some of its cars are still sold out through 2023.
The EV tax credit should be introduced with new conditions. Until President Biden’s Build Back Better plan stalled after Manchin refused to back the bill. It would have increased the credit from $7,500 to as much as $12,500 provided the vehicle and its battery were built in US facilities that were unionized to reap the full benefit. It would also have put an end to the EV credit caps that both Tesla and General Motors have since they are barred from lending after selling 200,000 EV units.
Manchin added that the money earmarked for expanding the electric vehicle tax credit program should be channeled to other sources, such as research into hydrogen powertrains. Manchin is a member of the West Virginia Hydrogen Hub Coalition, which yesterday welcomed House Speaker Roger Hanshaw, Senate President Craig Blair, Senate Minority Leader Stephen Baldwin and House Minority Leader Doug Skaff .
Manchin has in the past openly criticized a full EV transition and openly criticized the “benefits” of an all-electric future.
Senator Joe Manchin ‘hesitating’ on EVs: ‘I don’t want to stand in line waiting for a battery’
“I have serious concerns about moving too quickly toward an all-electric future,” Manchin said at a panel hearing earlier this month.
Manchin also believes that electric vehicles are not a way to break the dependency on oil from other countries. “It’s frustrating to hear calls for a faster transition to electrified transportation to reduce our dependence on foreign oil,” Manchin said in early April. “We cannot replace one unreliable foreign supply chain with another and believe that will solve our problems.”
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Senator Joe Manchin blasts EV tax credit expansion and calls for hydrogen development
