Biden to Support $23 Billion in EV Subsidies Before Election... Press Conference on 11th a Turning Point

$1.7 Billion in Car Subsidies for Rust Belt and Swing States
Strategic Move to Solidify Support Amid Resignation Pressure
Solo Press Conference Marks Critical Turning Point in Future

U.S. President Joe Biden, facing calls to resign after a lackluster presidential debate, is providing $1.7 billion (approximately 2.33 trillion won) to support the maintenance and expansion of electric vehicle facilities in battleground states, including the Rust Belt (a region of manufacturing decline). This move is seen as an effort to win voter support by injecting subsidies into labor-strong regions and swing states four months ahead of the U.S. presidential election.

[Image source=Yonhap News]

According to the White House on the 11th (local time), $1.7 billion in subsidies will be invested to strengthen the electric vehicle supply chain in eight states: Michigan, Pennsylvania, Georgia, Ohio, Illinois, Indiana, Maryland, and Virginia.

The subsidies will be used to convert 11 existing factories located in these eight states into electric vehicle production facilities with an annual capacity of one million units. The subsidies will cover the entire electric vehicle supply chain, including electric motorcycles, school buses, hybrid trains, and commercial electric trucks. Of the subsidies, $1.1 billion (approximately 1.51 trillion won) will be used to convert existing Stellantis factories into electric vehicle facilities.

President Biden stated, "Building a green economy is a win-win strategy for both labor unions and automobile companies," adding, "Workers abandoned during my predecessor’s administration are returning thanks to my policy support."

Jennifer Granholm, Secretary of Energy, said that with this subsidy support, the Biden administration’s key policy of a $177 billion (approximately 243 trillion won) electric vehicle support project will be completed.

This subsidy support measure is interpreted as a move by President Biden, who is under pressure to withdraw from the presidential race due to concerns about his age and cognitive abilities following the TV debate on the 27th of last month, to rebuild support from the ground up.

On the 8th, President Biden sent an open letter to Democratic lawmakers expressing his intention to complete his term, but calls for his withdrawal within the party have not subsided. Even former House Speaker Nancy Pelosi, who has supported Biden, pressured him the day before to reconsider his candidacy, stating that a presidential decision is necessary. Actor George Clooney, who had participated in fundraising activities for Biden, also publicly urged him to resign.

Meanwhile, on the evening of the last day of the North Atlantic Treaty Organization (NATO) summit, President Biden will hold an unscripted solo press conference. Through the press conference, he plans to demonstrate his vitality and dispel concerns about his age. Jake Sullivan, U.S. National Security Advisor, also stated at a briefing that NATO allies praised President Biden for strengthening both the United States and NATO. He added that during conversations among NATO leaders, there were no concerns expressed about Biden’s domestic political situation or former President Donald Trump’s potential re-election. Inside and outside Washington politics, Biden’s upcoming press conference is seen as a critical turning point that will determine his future course.