US President Joe Biden signed an executive order on Thursday with the intent to raise EV sales to half of all US vehicle sales by 2030.
The move, Biden said, was aimed towards reducing greenhouse gas (GHG) emissions. The order also proposes a cut in vehicle emissions by 2026, starting with a 10pc cut for all car models produced in 2023.
According to media reports, the 50pc EV sales target is supported by almost all automakers who sell vehicles in the US, but have indicated that to achieve this goal carmakers would need government funding amounting to billions of dollars.
The steel industry has also welcomed this move, with Kevin Dempsey, president and chief executive officer of the American Iron and Steel Institute (AISI) saying that this order along with the new tailpipe standards for vehicles to reduce GHG emissions will add momentum for the US auto sector and would be beneficial for the steel industry as well.
He added that the thinner advanced grades of steel being manufactured at present boost space optimization, especially in terms of adding more EV batteries per vehicle.