🤯 Picked by our AI, this stock rallied more than Nvidia this month, yielding 94% since MarchSee the stock

China's ability to flood EV market concerning to US, energy secretary says

Published 03/06/2024, 12:38 PM
Updated 03/06/2024, 12:42 PM
© Reuters. FILE PHOTO: U.S. Energy Secretary Jennifer Granholm views an electric Subaru Solterra EV on a visit to the Washington Auto Show in Washington, U.S. January 25, 2023.  REUTERS/Jonathan Ernst/File Photo
TSLA
-
RIVN
-

WASHINGTON (Reuters) - The United States is concerned about China's ability to flood the electric vehicle market but U.S. incentives can increase the affordability of domestically-made EVs, the U.S. energy secretary said on Wednesday.

"We are very concerned about China bigfooting our industry in the United States even as we're building up now this incredible backbone of manufacturing," Energy Secretary Jennifer Granholm said at an Axios event in Washington.

Chinese companies are producing waves of low-priced EVs that some worry could harm big U.S. car manufacturers, some of which have focused recently on big gasoline-powered sports utility vehicles.

Granholm said the U.S. did not want to see a repeat of China's influence on the solar panel market. "Solar technology was invented here ... and was bigfooted and pulled away because there was flooding of the market," Granholm said.

With incentives from the U.S. Inflation Reduction Act (IRA)and other programs, domestic manufacturers can bring down EV prices, she said. "China is investing massive amounts for the purpose of bigfooting, and so we need to understand that it is important for people to buy electric vehicles in an affordable fashion."

Granholm referred to a U.S. Commerce Department move last month to open an investigation into whether Chinese vehicle imports pose national security risks. The probe is needed because vehicles collect large amounts of sensitive data on their drivers and passengers and often use cameras and sensors to record information on U.S. infrastructure, the White House said.

© Reuters. FILE PHOTO: U.S. Energy Secretary Jennifer Granholm views an electric Subaru Solterra EV on a visit to the Washington Auto Show in Washington, U.S. January 25, 2023.  REUTERS/Jonathan Ernst/File Photo

The EV industry is experiencing a near-term slowdown. In late 2023, legacy automakers as well as Tesla (NASDAQ:TSLA) and Rivian (NASDAQ:RIVN) were throttling back EV investments and reworking product strategies.

Granholm mentioned a $4000 credit in the IRA for the purchase of a used EV as one of the incentives that could help spur demand.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.