An Australian company has decided to build a facility in Tennessee that will manufacture chargers for electric vehicles (EV), and President Biden, who has touted a push for clean energy and electric vehicle conversion as a key part of his presidential agenda, is expected to make the announcement later today, reports CNN.
Tritium, the Australian company, has said that the plant will be capable of producing up to 30,000 EV chargers a year while creating 500 local jobs. It’s all part of a bid by the White House to increase manufacturing in America while also tackling climate change concerns.
It folds into the plan by the White House to build EV charging infrastructure across the country that should encourage EV adoption by households while taking some of the burden off of private industry. $7.5 billion of the infrastructure law is slated for increasing charging stations across the country from 47,000 to over 500,000.
President Biden has set a voluntary conversion alongside much of the automotive industry committing to half of all vehicles sold by 2030 being electric or plug-in hybrids. The EV industry is only set to continue strong growth, particularly with regulatory support from the White House.
On Tuesday, Biden also highlighted Intel’s decision to build chip manufacturing facilities in Ohio at a cost of $20 billion. The facilities will provide 7,000 construction jobs as well as 3,000 permanent jobs once building is complete and will help to tackle and prevent the overseas dependency on semiconductor chip manufacturers. Current shortages and supply chain issues are bringing manufacturing back to the domestic front as industries continue wrestling with the impacts of chip shortages.
Investing in EVs Globally With KARS
For investors looking to capture the EV growth in the U.S. while also harnessing the growth in one of the largest electric vehicle markets globally, the KraneShares Electric Vehicles and Future Mobility ETF (NYSE: KARS) offers a good solution.
KARS invests in many familiar car companies such as Tesla, Ford, Mercedez-Benz, GM, BMW, and others while also investing in major Chinese EV manufacturers such as Xpeng, Nio, and BYD, some of the biggest companies in the global electric vehicle industry.
KARS measures the performance of the Bloomberg Electric Vehicles Index, which tracks the industry holistically, including exposure to electric vehicle manufacturers, electric vehicle components, batteries, hydrogen fuel cells, and the raw materials utilized in the synthesis of producing parts for electric vehicles.
The index has strict qualification criteria. Companies must be part of the Bloomberg World Equity Aggregate Index, have a minimum free-float market cap of $500 million, and have a 90-day average daily traded value of $5 million.
The ETF has an expense ratio of 0.70%.
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