$50 Million For EV Suppliers It Too Little

Axios published a report that the US government will provide $50 million to EV auto component producers, but given the size of the EV market and its problems, it won’t make a dent. “The Energy Department is steering around $50 million into six states to help small- and mid-sized auto suppliers convert facilities to serve EV value chains.”

Last year, Tesla produced $45 billion in EV sales in the US. Every major legacy car company has an EV division, and billions of dollars are invested in EV charging stations. 

The figure needed from the federal government to dent EV company revenue is probably closer to $5 billion. That could address charging stations, more significant tax incentives, and inexpensive capital for small companies.

EV sales in the US have slowed. Money to suppliers will not help that. Any critical suppliers have too much inventory. 

One thing that is certain for now is that the Trump Administration will reverse many green initiatives. At that point, the $50 million will be even more worthless.

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