DETROIT (AP) — While President Donald Trump took aim at the electric vehicle industry this week, there’s still optimism about the industry’s future in Michigan, the state’s most recognizable auto hub. is reaching its first destination for vehicle investment.
More than $27 billion is being poured into 60 EV manufacturing and battery projects According to Atlas Public Policy, ranking even with Georgia in the state, with $26.6 billion, is an indication that the birthplace of the modern auto industry is central to its present and future.
Michigan is home to hundreds of supply companies in addition to automakers.
There is Factory ZeroGM’s repurposed assembly plant for Electric Hammers and Silverados, in a diverse Detroit neighborhood of auto history, is rich in auto history.
President Joe Biden test drives a Hummer at the General Motors Factory Zero electric vehicle assembly plant during a tour on Nov. 17, 2021, in Detroit. (AP Photo/Evan Vossey, File)
1.6 billion dollars Battery Manufacturing Campus In Van Buren Township in southeast Michigan, which is expected to be fully operational once a year, there will be more than 2,100 jobs and the equivalent of 200,000 EV battery packs per year.
And in Detroit’s Corktown neighborhood, next door is a futuristic building A once-attractive Michigan Central train station Renovated by Ford, it is now home to NewLab, where entrepreneurs experiment with high-tech equipment, network with other founders and funders, and collaborate with automakers.
The list goes on.
“I think it’s not a bad investment,” said auto dealer Eric Frehsi, even with the president’s policy changes. He was referring to both the state’s electrification efforts and the preparation of his business, Tamaroff Auto Group, in metro Detroit, for EVs.
Frehse has purchased forklifts at the dealership to lift heavy batteries and has taught his technicians to work on EVs that come in for maintenance. He has installed chargers. Frehs sells vehicles from Nissan, Honda, Acura and Kia, each of which has EV models for sale.
“I think that’s still the direction we’re going,” he said.
The Detroit skyline is seen in Detroit on May 12, 2020. (AP Photo/Paul Sensei, File)
On Detroit’s east side, Ray Smith runs an EV training program for aspiring auto technicians. At Blast Detroit, apprentices learn to evaluate EV electrical, software and battery systems and compare them to conventional gasoline-powered cars.
Regardless of changes in federal policy, “of course we need to move forward,” Smith said.
Monday, the president signed An executive order The promise of Eliminate an EV “mandate.” Citing President Joe Biden’s goal to have 50% of new vehicles sold in the U.S. be electric by 2030 and Environmental Protection Agency Action Reducing greenhouse gas emissions from vehicles in the coming years. The policies never required automakers to buy electric vehicles or consumers.
President Trump’s order indicates that he will roll back those pollution rules. Perhaps more importantly for some users, it’s likely to cancel one 7,500 tax credit for new EV purchases. He had already stopped Billions of dollars in financing Dedicated to EV charging stations.
Stellants, the maker of Jeep and Ram, said in a statement that it is “well positioned to adapt to the policy changes enacted by the new administration” and that it looks forward to working closely with the president. Ford had no comment on the changes, and a GM spokeswoman declined to comment.
already, The EV industry has faced massive headwinds. Some car manufacturers have it Pulled backPlans to go electricityAnd although EVs will account for 8.1 percent of new vehicle sales in the U.S. in 2024, sales growth slowed from the year before, according to MotorIntelligence.com. Although EVs are becoming more affordable, they still cost more than a car that runs on gasoline.
At the nonprofit Eastern Michigan Electric Automobile Association, president Bruce Westlake told The Associated Press that consumers are coming with a desire to clean up the environment. But that demand could decrease with less federal support for EVs and clean energy.
Westlake added that U.S. automakers “could find themselves in a position where they can’t recover from where they don’t want the market to go.”
“The Michigan EV industry is caught between building buildings that are profitable now,” he said, referring to gasoline cars at the expense of developing EVs for the future. “I believe most of the initial investment will pay off.”
Another Detroit-based company, PlugZen, focuses on EV charging for companies with fleets of cars and trucks. Ultimately he wants to put chargers in workplaces and multi-family housing where charging can be difficult.
“I’m taking a wait and see approach when it comes to Michigan and how all of these things are going to play out,” CEO Q. Johnson told the AP. He works regularly with people in the Michigan EV industry, and said he doesn’t expect them to change direction dramatically.
Why? “We are determined not to be left behind.”
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Alexa St. John is an Associated Press climate solutions reporter. Follow this on X: alexa_stjohn. Approach him [email protected].
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