President Biden is loaning Ford’s battery manufacturing partner $9 billion to build three more electric vehicle battery plants while officials talk about how the green energy plan is hurting the United States. The new electric vehicle plants are slated to be in Tennessee and Kentucky and it’s an effort to increase domestic production to try to keep up with China. Ford poured $11 billion into this September 2021.
Ford starting layoffs
But Ford is laying off those in that same section. Leaders from the House Energy and Commerce Committee gathered to talk with the administration about how green energy is affecting Americans.
Two Republicans that are Chairs of both the Environment, Manufacturing, and Critical Materials Subcommittees put a statement together that explained “people are struggling to afford some of the highest energy and auto prices in decades as a result of Biden’s energy and inflation crisis.”
Loan between Ford and its Korean partner
Chairs Cathy McMorris Rodgers and Bill Johnson said the rush toward green energy is hurting the poor and middle class the most. These things are expensive at a time when average Americans can have trouble putting food on the table for their families.
This is the biggest government loan to an American automaker since 2009 when the industry was most recently bailed out. The Examiner did an article that explained the urgency.
Ford will be busy
The Biden administration is competing against China to have 50% of all vehicles sold in the US be electric by 2030. Currently electric vehicles account for only 7% of the auto buying market.
The Loan Programs Office is overseeing the distribution of about $400 billion in loans for this. But Ford announced in March that its electric vehicle “Ford Model e” is bleeding money. Sen. Joe Manchin said in April that this would only empower China.
Ford will do its best
Manchin’s statement read,
“The EPA is lying to Americans with false claims about how their manipulation of the market to boost EVs will help American energy security. In reality, this is a Trojan horse. To meet these timelines will mean strengthening our reliance on minerals and technologies controlled by the Chinese. Taken in concert with the clear violation of the IRA to undermine provisions that would actually secure these supply chains, this Administration is taking steps that will only result in a more energy secure and powerful China. I don’t believe that making progress on climate change should come at the expense of our national and energy security. I fully support Congress overturning these dangerous EPA regulations.”
The kicker here is even though the President is trying to increase domestic production of electric vehicle batteries, he’s beating his head against a wall. Some of the ingredients can only found in foreign countries – that China controls.
