‘Instability in the market’ or rightsizing? What does federal EV cold shoulder mean for Illinois?
How will President Donald Trump’s EV-hesitancy affect the industry in Illinois, a state committed to having 1 million electric vehicles on the road by 2030?
It looks like a bumpy trip, experts say.
Trump has signaled he wants to end the $7,500 tax credit on electric vehicles, and legislation to that effect is pending in Congress.
“By announcing he wants to get rid of the EV tax credit, President Trump is creating instability in the market and is putting a big question mark over the growth in EV manufacturing and purchasing,” Environmental Law and Policy Center Executive Director Howard Learner said.
In a January executive order, Trump pledged to end the EV “mandate” and create a level playing field for gas-powered vehicles. He promised to eliminate “unfair subsidies and other ill-conceived government-imposed market distortions that favor EVs over other technologies and effectively mandate their purchase by individuals, private businesses, and government entities alike by rendering other types of vehicles unaffordable.”
On Feb. 12, Republican U.S. Sen. John Barrasso of Wyoming introduced legislation to nix tax credits for EVs and charging stations.
“Wyoming families should not foot the bill for expensive electric cars they don’t want and can’t afford,” Barrasso said.
“All it will do is cost America jobs and give more market share to Chinese companies,” Learner responds. “Anti-EV policies work to the detriment of jobs and economic growth in Illinois.”
Affected businesses could include: electric truck manufacturer Rivian in Normal; Stellantis, which is reopening its closed Belvidere plant to produce an electric Dodge Durango; and Gotion, which plans to open a EV battery factory in Manteno, he said.
Meanwhile, Illinois Alliance for Clean Transportation Chairman John Walton noted rebates were first offered to offset the high prices of EVs for consumers new to the technology.
“I think the rebates have served their purpose,” the Wheaton resident said. Now, “you can buy an electric car for just north of $30,000. I think the goal of what they wanted to do — bring the price down to where the average guy could afford one” has been met.
The average price of a new car in the U.S. is around $50,000.
The Federal Highway Administration in February paused funding for electric vehicle charging networks across the country until the program can be reviewed. However, Trump administration efforts to freeze other committed federal funding is facing legal challenges from states.
The president's move to pull back federal support from EV-charging facilities “simply makes driving more inconvenient for people in Illinois,” Learner said.
Illinois Democratic lawmakers and Gov. JB Pritzker have approved a number of laws, such as the Climate and Equitable Jobs Act (CEJA), to promote EVs and charging networks. The state offers a $4,000 EV rebate on electrics.
Illinois Environmental Protection Agency spokeswoman Kim Biggs said the state is obligated $25.3 million in National Electric Vehicle Infrastructure funds (a Biden administration program) for this year out of a total $149 million advanced appropriation.
“Those funds are proceeding per federal directive,” Biggs said. “The state will continue to pursue every option available to ensure we receive the funds promised to us.
“Meanwhile, state-funded CEJA electric vehicle charging infrastructure projects as well as the EV Rebate Program continue to move forward,” Biggs said.
But Walton questions whether the government should be pushing one form of clean energy over another.
“I don’t think plug-in EVs are the singular solution that a lot of people think they are. I think that’s one of several solutions,” he said, adding plans are underway to build a hydrogen hub in Illinois.
The Midwest Alliance for Clean Hydrogen project would expedite production of hydrogen as a clean energy source.