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Carmakers Want To Keep EVs In Drive

Nov 25, 2024 - forbes.com
The Trump administration's transition team has indicated that stricter fuel-economy rules and support for electric vehicles (EVs) and public charging infrastructure could be at risk. This follows Trump's previous term where he discarded stringent miles per gallon rules set by President Obama and showed no interest in EVs. However, automakers have since committed billions to new plants and technology for more environmentally friendly electrified products. Industry lobbyists are urging the new administration to retain some of the Biden-era rules to prevent undermining their strategic business changes.

Meanwhile, Fervo Energy, a Houston-based company, has raised over $400 million for a plan to extract geothermal energy from superhot rocks deep underground using fracking techniques. The company's investors include Mitsubishi Heavy Industries, traditional oil-and-gas producers, Mark Zuckerberg, and Breakthrough Energy Ventures, a climate change-focused venture capital fund organized by Bill Gates. Over the next three years, Fervo plans to drill 80 boreholes in the Escalante Desert near Milford, Utah.

Key takeaways:

  • The U.S. auto policy is likely to change under the new Trump administration, with signals that tougher fuel-economy rules and support for electric vehicles could be cut.
  • Automakers have adjusted their business plans in recent years, investing billions in new plants and technology to produce more environmentally friendly electrified products.
  • Hyundai plans to continue pushing sales of battery-powered autos but is preparing to adapt to new policies. The company's new plant in Savannah, Georgia, will produce not only EVs but also hybrids and plug-in hybrids.
  • Fervo Energy, a Houston-based company, has raised over $400 million for a plan to extract geothermal energy from superhot rocks underground using fracking techniques.
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