August 6, 2021: -On Thursday, President Joe Biden will set a new national target for adopting electric vehicles, calling for them representing 40% to 50% of all recent auto sales by 2030, according to senior administration officials. 

The target is expected to be supported by companies like General Motors, Ford Motor, Stellantis, and other automakers. Executives from each Detroit automaker are scheduled to attend an event at the White House on Thursday.

Even though the president will sign an executive order, the sales target is not mandatory. Instead, the document motivates the U.S. auto industry and government to promote legislation and the adoption of electrified vehicles. The target also including zero-emission vehicles powered by fuel cells, batteries, and plug-in hybrid models with internal combustion engines.

The officials said that the administration of Biden would announce the proposed federal fuel economy and emission standards through the year 2026 model year that build on California’s more burdensome regulations. The proposed measures are subject to a public comment period and final approval.

While automakers have increasingly supported EVs, they’ve been mixed on near-term fuel economy standards as they attempt to rake in profits from traditional vehicles to fund electric models. EVs have been unprofitable or produce lower profit margins from the past.

Some smaller brands, like Volvo, plan to go all-electric by 2030,  while Stellantis and Ford have announced goals in line with the order of Biden’s of nearly 40% EVs by then. GM announced an “aspiration” to offer all-electric and fuel-cell vehicles by 2035 exclusively.

Such rapid EV adoption faces significant hurdles like charging infrastructure, consumer adoption, and vehicle costs, among other issues.

“Today, Ford, GM, and Stellantis announced their shared aspiration to achieve sales of 40-50% of annual U.S. volumes of electric vehicles by 2030 to move the nation closer to a zero-emissions future consistent with Paris climate goals,” the automakers said.

“We look forward to working with the Biden Administration, Congress, and state and local governments to enact policies that can enable these ambitious objectives,” automakers added.

In May, IHS Markit forecast U.S. all-electric sales amid 25% and 30% of new vehicles in 2030 and 45% to 50% by the year 2035.