EVs drive wedge among Republicans as Biden blocks move to scuttle $7.5bn 'Buy American' chargers investment

President Biden has exercised his veto power to block a Republican-led resolution aimed at impeding the administration’s plan to allocate $7.5 billion for the construction of electric vehicle (EV) charging stations across the US.

In his veto, Biden argued that the congressional resolution would have adverse effects on domestic manufacturing and hinder progress in transitioning to clean energy.

Biden emphasized the potential negative impact on the substantial private sector investments already made in domestic EV charging manufacturing.

The President’s veto aligns with the administration’s commitment to promoting electric vehicles as a crucial element in the fight against global warming.

The Inflation Reduction Act, a landmark climate law signed in 2022, provides incentives for both consumers purchasing electric vehicles and manufacturers producing them in the United States.

The political landscape is becoming increasingly polarised regarding electric vehicles, with the Biden administration championing their role in combating climate change, while some Republicans, including former President Donald Trump, criticize EVs as unreliable, inconvenient, and detrimental to US auto manufacturing.

In a recent move, Republicans, joined by some Democrats, voted to repeal a waiver allowing federally funded EV chargers to be made from imported iron and steel if assembled in the United States. The “buy American” requirement of the 2021 infrastructure law mandates the use of U.S.-produced iron and steel for federally funded projects.

The infrastructure law allocates $7.5 billion to establish a national network for recharging electric vehicles, addressing the critical need for convenient charging stations to encourage more motorists to adopt electric vehicles.

Senator Marco Rubio, a Republican from Florida, led the effort to eliminate the waiver, asserting that it hurts American companies and empowers foreign adversaries like China in controlling U.S. energy infrastructure. President Biden’s veto highlights the administration’s concern that repealing the waiver could lead to federal funds being spent on chargers manufactured in competitor nations, including China.

In November, the Senate voted 50-48 in favour of repealing the waiver, with three Democrats joining Republicans. The House voted 209-198 in January to support the repeal, with two Democrats crossing party lines to vote with Republicans, and two Republicans opposing the measure.

(With inputs from agencies)