President Biden Raises the Bar on Electrification of the Auto Industry through Executive Order

On August 5, 2021, US President Joe Biden announced and signed an executive order that sets a new target to make half of all new vehicles sold in 2030 zero-emissions vehicles, including battery electric, plug-in hybrid electric and fuel cell electric vehicles. This executive order is consistent with President Biden’s goal of building more than 500,000 electric vehicle (EV) chargers throughout the United States, which will provide manufacturing opportunities for charging infrastructure and battery technology. These new actions announced by President Biden—paired with investments in the Build Back Better agenda—aim to build up American leadership in clean cars and trucks “by accelerating innovation and manufacturing in the auto sector, bolstering the auto sector domestic supply chain, and growing auto jobs with good pay and benefits.” The executive order will commence “development of long-term fuel efficiency and emissions standards to save consumers money, cut pollution, boost public health, advance environmental justice, and tackle the climate crisis.” It also directs agencies to:

  • Consult with the US Secretaries of Commerce, Labor and Energy on ways to accelerate innovation and manufacturing in the automotive sector, strengthen the domestic supply chain for that sector and grow jobs that provide good pay and benefits, as well as,
  • Secure input from a diverse range of stakeholders, including representatives from labor unions, industry, environmental justice organizations and public health experts.

Concurrently with President Biden’s announcement, American automakers Ford, GM and Stellantis, along with the United Auto Workers (UAW), released statements saying they look forward to working with the Biden Administration to enact policies that will enable President Biden’s 2030 target to be reached. In a joint statement, Ford, GM and Stellantis also recognized that the United States’ transition to electric vehicles “represents a dramatic shift from the U.S. market today that can be achieved only with the timely deployment of the full suite of electrification policies committed to by the Administration in the Build Back Better Plan, including purchase incentives, a comprehensive charging network of sufficient density to support the millions of vehicles these targets represent, investments in R&D, and incentives to expand the electric vehicle manufacturing and supply chains in the United States.” Similarly, in a joint statement from BMW, Ford, Honda, Volkswagen and Volvo, the automakers state that, “bold action from our partners in the federal government is crucial to build consumer demand for electric vehicles….” It is expected that government agencies will announce policies, procedures and regulations that will advance President Biden’s target of electric vehicles representing 50% of auto sales in 2030.

Carl J. FlemingCarl J. Fleming
Carl J. Fleming focuses his practice on mergers and acquisitions, project development and project finance, predominately in the renewable energy industry. He leads energy, infrastructure and PPP transactions throughout the US and in more than 40 countries worldwide. Carl represents private equity investors, Fortune 500 companies, foreign governments, and a broad range of leading renewable energy developers and sponsors. Read Carl Fleming's full bio.


Elle HayesElle Hayes
Elle Hayes focuses her practice on general corporate matters and transactions. While in law school, Elle was assistant communications editor for the Journal of Technology Law & Policy. She also served as a student volunteer coordinator with Southern Legal Counsel, where she organized events to assist homeless and low-income individuals obtain legal advice, and interned with Chief Judge Joseph Farina of the Eleventh Judicial Circuit Court of Florida.Read Elle Hayes' full bio.


Dominique J. TorsielloDominique J. Torsiello
Dominique J. Torsiello focuses her practice on transactional matters in the energy industry. Read Dominique Torsiello's full bio.

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