The U.S. Government Plans To Purchase 9,500 Electric Vehicles By 2023

August 8, 2023
U.S. government agencies plan to purchase 9,500 electric vehicles in the 2023 budget year, a goal that nearly tripled from the previous budget year, but the government’s plan faces problems such as insufficient supply and rising costs.
According to The Government Accountability Office, 26 agencies with electric vehicle purchase plans approved this year will need more than $470 million in vehicle purchases and nearly $300 million in additional funding. For the installation of necessary infrastructure and other expenses.

The cost of buying an electric car will increase by nearly $200 million compared to the lowest-priced gasoline car in the same class. These agencies account for more than 99 percent of the federal vehicle fleet, excluding the United States Postal Service (USPS), which is a separate federal entity. The U.S. government did not immediately respond to a request for comment.
In the process of purchasing electric vehicles, U.S. government agencies also face some obstacles, such as not being able to buy enough electric vehicles, or whether electric vehicles can meet demand. The U.S. Department of Transportation told the Government Accountability Office that its original goal for 2022 was to purchase 430 electric vehicles, but because some manufacturers canceled some orders, they eventually lowered the number to 292.

U.S. Customs and Border Protection officials also said they believe electric vehicles “cannot support law enforcement equipment or perform law enforcement tasks in extreme environments, such as in border environments.”
In December 2021, President Joe Biden issued an executive order requiring government agencies to stop buying gasoline cars by 2035. Biden’s order also states that by 2027, 100 percent of federal light-vehicle purchases will be pure electric or plug-in hybrid electric vehicles (PHEVs).
In the 12 months ending Sept. 30, 2022, federal agencies quadrupled purchases of electric vehicles and plug-in hybrids to 3,567 vehicles, and the share of purchases also increased from 1 percent of vehicle purchases in 2021 to 12 percent in 2022.

These purchases mean that with the increase in electric vehicles, the demand for charging stations will also increase, which is a huge opportunity for the charging pile industry.