‘I just love these electric vehicles,’ Granholm said before driving Cadillac Lyriq in June
Jennifer Granholm at an EV charging station in Tennessee (Twitter/@SecGranholm)
The expensive electric vehicle that Energy Secretary Jennifer Granholm used during her ill-fated summer road trip is no longer eligible for federal tax credits thanks to a new rule that pulls subsidies for cars made with certain Chinese components.
As of Jan. 1, American buyers will no longer receive a $7,500 Biden administration tax credit when they purchase a Cadillac Lyriq, General Motors confirmed. At issue are Treasury Department battery sourcing rules, which forbid tax credits from going to electric vehicles that contain battery components from China and other foreign nations of concern. Those rules went into effect Monday.
The development comes as a blow to Granholm, who toured the country in a Cadillac Lyriq during her infamous June electric vehicle road trip, which was aimed at encouraging Americans to purchase electric vehicles. At one point, the pricey Cadillac—which can cost upwards of $60,000—developed a “hardware issue” that made it difficult to charge.
During another leg of the trip, Granholm planned to stop at a public charging station outside of Augusta, Georgia, but her staff determined before her arrival that there were not enough open stations to accommodate her. As a result, Granholm’s team used a gas-powered car to block the public from accessing the station’s only available charger, which Granholm eventually used to charge her Lyriq. One woman was so frustrated by the move that she called the police.
“Hi, I’m calling because I’m in the Grovetown Walmart at the charging station, and there’s literally a non-electric car that is taking up the space, they said they’re holding the space for somebody else, and it’s holding up a whole bunch of people who need to charge their cars,” said the caller, according to a 911 call first reported by the Washington Free Beacon.
Granholm nonetheless praised the Lyriq and the other electric vehicles that made up her road trip caravan, calling the trip “incredible” and “amazing” in a string of social media posts.
“I just love these electric vehicles,” Granholm posted at the time. Her office did not return a request for comment.
General Motors is working to offset the tax credit loss by offering its own $7,500 incentive on the Lyriq and other electric models deemed ineligible under the new rules. Company spokeswoman Liz Winter said the Lyriq lost out on the credit “because of two minor components” and predicted that the vehicle “will be eligible for the full incentive in early 2024.”
John Podesta, who serves as senior adviser to President Joe Biden for clean energy, said the rules targeting Chinese battery components will help “reverse the decades-long trend of letting jobs and factories go overseas to China.”
“Thanks to the Investing in America agenda and today’s important guidance from Treasury and the Department of Energy, we’re helping ensure that the electric vehicle future will be made in America,” he said in December.
How can governments and policymakers encourage the adoption of electric vehicles
Recording obtained by NPR.
Despite the charging difficulties and the recent loss of the federal tax credit, Granholm remains a staunch advocate for electric vehicles. In fact, she has referred to them as a “passion” of hers, stating in June, “I just love these electric vehicles.”
Granholm’s enthusiasm for electric vehicles is not unfounded. Electric vehicles offer numerous benefits, both for individuals and for the environment. They produce zero tailpipe emissions, helping to reduce air pollution and combat climate change. Additionally, they are quieter and provide a smoother driving experience compared to traditional gasoline-powered vehicles.
Furthermore, electric vehicles help to decrease dependence on fossil fuels, which are finite resources and contribute to geopolitical tensions. By transitioning to electric vehicles, countries can increase energy security and reduce their reliance on oil imports. Electric vehicles also have the potential to promote economic growth and job creation, as the manufacturing and maintenance of electric vehicles require a skilled workforce.
However, the transition to electric vehicles is not without its challenges. One of the main obstacles is the availability and accessibility of charging infrastructure. While the number of charging stations is growing, there is still a need for widespread deployment of charging infrastructure to alleviate range anxiety and ensure convenient charging for all electric vehicle owners.
Additionally, the cost of electric vehicles remains a barrier for many potential buyers. Although prices are gradually becoming more competitive, electric vehicles still tend to have a higher upfront cost compared to gasoline-powered vehicles. However, it is important to note that the lower operating and maintenance costs of electric vehicles can offset the initial investment over time.
To encourage the adoption of electric vehicles, governments and policymakers can play a crucial role. They can implement policies that provide incentives such as tax credits, rebates, and subsidies for electric vehicle purchases. They can also invest in the expansion of charging infrastructure and support research and development in electric vehicle technology to further improve their performance and affordability.
In conclusion, despite the setback of the loss of federal tax credits for the Cadillac Lyriq, Energy Secretary Jennifer Granholm’s passion for electric vehicles remains strong. The transition to electric vehicles is an important step towards a more sustainable and environmentally friendly transportation system. However, to fully realize the potential of electric vehicles, there is a need for continued investments in charging infrastructure and supportive policies that make electric vehicles more accessible and affordable for all.
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