Georgia officials believe the state is prepared for President Joe Biden’s new order to hasten the sale of electric vehicles. The electric car manufacturing business in Georgia has grown, with worldwide leaders establishing facilities in the state. Officials say the industry’s rapid expansion makes it difficult to maintain track of its continued economic advantages in the state.
“We don’t have an effect estimate yet that takes into account the additional value these firms provide to their communities as well as the state,” said Marie Hodge Gordon, Director of Communications for the Georgia Department in charge of the Economic Development. According to Frost & Sullivan, the passenger electric car market in the United States will grow to approximately 7 million units yearly by the year 2025, up from 1.4 million in the year 2020.
On August 5, Biden issued an executive order mandating that by 2030, 50% of all new cars sold be zero-emission vehicles. The order comes with financing and is aimed at propelling the United States to the forefront of the electric vehicle market. Under the $1.2 trillion federal infrastructure proposal adopted by the US Senate on August 10, Georgia could receive $135 million over five years to fund the creation of an electric car charging network. The state would also be eligible for the $2.5 billion in electric vehicle charging grants.
According to the White House, the United States is lagging behind in the production of electric vehicles and batteries. According to White House officials, the United States’ market share of electric car sales is only 1/3 that of China.
Biden’s order seeks for investments in a nationwide network of electric car charging stations, customer incentives at the point of sale, and the expansion of the domestic production chain and technologies. It instructs agencies to engage with the secretaries of commerce, labour, and energy on methods to speed up and improve the sector, as well as solicit input from sector stakeholders and states that are leading the way in lowering vehicle emissions.
Before Biden’s executive order, Georgia had seen a lot of interest from the electric vehicle industry. Last month, Governor Brian Kemp announced the formation of the Electric Mobility and Innovation Alliance. The state-wide partnership between the commercial and public sectors aims to grow the business and retain Georgia as a “national powerhouse in the electric mobility market,” according to Kemp.
SK Innovation, which is a Korean electric vehicle battery manufacturer, is expanding its operations in Jackson County. The initial project and subsequent growth of SK Innovation account for almost $2.6 billion in terms of investment in Georgia. According to Georgia’s economic growth project statistics, the state received $287.7 million in investment via several electric car initiatives from July 1, 2020, to August 16, 2020.