1 big thing: A jolt for the Battery Belt

2. A big test for universal basic mobility

Illustration of a pattern of scooters.  

3. The country's best internships

Illustration of a hand holding a coffee caddy coming out of a laptop screen. 

4. Just one office day a week, please

Illustration of an office chair moving from left to right, but slowing down and reversing before it gets all the way across the screen.

5. The R-rated struggle

What's the Battery Belt? Nothing short of a potential sea change in U.S. manufacturing, Joann reports today — with big implications for the future of electric vehicle production.

Join Axios’ Ina Fried and Russell Contreras tomorrow at 12:30 p.m. ET for a virtual event examining the impact technology can have on reducing recidivism. Guests include The Last Mile co-founder Chris Redlitz and Justice Through Code founder and director Aedan Macdonald. Register here.

Today's Smart Brevity count: 1,039 words ... 4 minutes.

A hearty thanks to What's Next copy editor Amy Stern.

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The next decade of big, sweeping changes will unfold in cities and communities where new technologies like 5G, AI and drones are transforming how we work, live and play together.  What’s Next will guide you through the revolution.

Axios What's Next

1 big thing: Bachelor(ette) party mania

Illustration of coins flowing out of a champagne bottle.

2. Facebook tests encryption-by-default

Illustration of a padlock with a slide to unlock touch button. 

3. Travel spending booms

Illustration of Benjamin Franklin holding a tropical cocktail while wearing a sunhat and sunglasses.

4. Amazon's retail robot proving ground

The Macy's (or Bon Marché) building, as seen on 3rd and Pine.

5. One fun thing: Look up!

A time lapse of meteors streaking through the sky.

Pop the champagne! Pre-wedding bashes are back in a big way, Jennifer reports in her story today.

Today's Smart Brevity count: 1,069 words ... 4 minutes.

1 big thing: "Flying taxis" go military

2. New York to D.C., by seaplane

A Tailwind Air seaplane glides on river on August 4, 2021 in Manhattan, New York. 

3. The Airbnb party's over

Illustration of a woman in an inner tube in a pool with a giant key attached

4. 'Quiet quitting' has workers checking out

Illustration of a water cooler, with the word "nope" bubbling up from the bottom.

5. One fun thing: The $3,000 electric car

"Flying taxis" won't enter commercial service anytime soon — so the companies building them are turning to the Pentagon for financial help in the meanwhile, Joann reports today.

Join Axios’ Ina Fried and Russell Contreras today at 12:30pm ET for a virtual event examining the impact technology can have on reducing recidivism. Guests include The Last Mile co-founder Chris Redlitz and Justice Through Code founder and director Aedan Macdonald. Register here.

Today's Smart Brevity count: 990 words ... 4 minutes.

A hearty thanks to today's What's Next copy editor, Patricia Guadalupe.

1 big thing: CEOs' new mental health road map

Illustration of many yellow sticky notes with a pink one in the center with a brain on it

2. Robotaxis take Vegas

Lyft and Motional are developing robotaxi service in Las Vegas. 

3. The emerging "Extreme Heat Belt"

4. Teens use the internet "almost constantly"

5. ICYMI: Scoring worker productivity

Illustration of a lone keyboard key with a briefcase icon on it. 

Is your company looking out for your mental health? There's a new initiative to get more execs thinking about workers' well-being, Jennifer reports today.

Today's Smart Brevity count: 1,166 words ... 4½  minutes.

1 big thing: The K-12 school of the future

The new Ehrman Crest Elementary/Middle School, opening this fall in Seneca Valley, Pennsylvania.

2. New York, with fewer cars

Photo illustration of a business suit clad arm placing a car of one color down among a fleet of differently colored cars.

3. Wastewater surveillance goes mainstream

An illustration of a magnifying glass examining a sewer drain.

4. The EV charging haves and have-nots

5. One fun thing: Getting your (Star)bucks back

An illustration of a cup of coffee with steam shaped like a dollar sign.

Elementary, middle and high schools as you knew them are undergoing big changes, Jennifer reports in her story today.

Today's Smart Brevity count: 1,052 words ... 4 minutes.

A hearty thanks to What's Next copy editor Kathie Bozanich.

Next-generation aircraft companies are increasingly turning to the U.S. Defense Department to accelerate their path to commercial flight. 

Why it matters: It can be difficult to earn regulatory approval — not to mention public acceptance — of newfangled flying machines like drones, flying taxis or supersonic jets. And investors usually aren't very patient. 

Military contracts can fill near-term revenue gaps and get test vehicles into the sky more quickly, helping to speed commercial development.

Driving the news: The latest example is Joby Aviation, which said last week that it is nearly doubling its existing contract with the U.S. Air Force's Agility Prime program. 

The program, created by the Air Force's innovation arm, works with private companies building innovative aircraft.

The effort is meant to accelerate the development of electric vertical takeoff and landing aircraft (eVTOLs) for military and commercial use. (The U.S. military already uses gas-powered VTOLs, like Boeing's Osprey — though that aircraft is not without its issues.)

Under the expanded contract, now worth up to $75 million, the U.S. Marine Corps will also test Joby’s eVTOLs in noncombat roles such as resupply, transport, and emergency medical response.

Between the lines: Joby executive chairman Paul Sciarra said the company's ultimate goal is still to launch a commercial air taxi service, but military business can help it get there by providing access to testing facilities, offering early operational experience, and offsetting some research and development costs. 

"We always thought it made sense to have a few shots on goal," he tells Axios.

"This is about getting new technology to the Pentagon at a lower cost, and faster," he said. "But it also ties into a long history that the military is often a good first customer."

And working with the U.S. Air Force or Marines will also help build consumer awareness and trust, he said, adding, "seeing them fly around on bases helps normalize them to consumers."

Other next-gen aviation companies have also turned to Defense Department contracts while working toward commercial deployment. 

Beta, another eVTOL company, earlier this year performed the first crewed eVTOL demonstration flights for Agility Prime.

Boom Supersonic and Northrop Grumman are working on a supersonic special-mission aircraft that could be used by the government for rapid surveillance and reconnaissance, command and control, emergency medical evacuation, and troop transport. 

Skydio, a manufacturer of autonomous drones, struck a $100 million deal in February to supply drones to the U.S. Army. 

The parent of another drone company, Teal, won an Army contract in March to develop a next-generation autonomous drone system for surveillance and reconnaissance.

The big picture: The Defense Department has long invested in experimental aviation and transportation tech that it believes could give the U.S. a geopolitical edge over its rivals.

The military is especially interested in eVTOLs because they're expected to be cheaper and easier to maintain than traditional helicopters — and quieter, too, which would help in stealth operations.

The bottom line: When you're inventing a new type of electric aircraft, diversification makes a lot of sense. 

Flying taxis get a big boost from military money

Joby, Boom Supersonic and others are landing big Pentagon contracts

Image of Joby's multi-rotor electric vertical takeoff and landing aircraft on an airfield at dusk. 

Aviation

Technology

Data: Center for Automotive Research; Map: Jared Whalen/Axios

The climate bill President Biden signed into law yesterday will open up tens of billions of dollars in subsidies for high-tech electric vehicle plants across the South and the Midwest.

Why it matters: The package is a big down payment on addressing climate change and moving toward energy independence as the U.S. races to build a domestic supply chain for batteries and other critical materials.

It could also be a major economic jolt for a large swath of the country some are calling the Battery Belt, where lots of EV-related factories and facilities are being built.

Driving the news: The auto industry has already poured billions into new EV and battery manufacturing facilities across North America over the last couple years. 

Now automakers and battery suppliers will be eligible for billions of dollars in federal loans and tax credits to offset those costs and spur additional investments. 

For example: The government will provide a tax credit of $35 per kilowatt hour (kWh) for each U.S.-produced battery cell.

That's 35% of today's average cost of producing a battery cell.

Ford, for instance, could get a $3 billion tax break for the twin factories it's building in Kentucky, which will be able to produce 86 gigawatt hours' worth of batteries annually. (The IRS still has to figure out how exactly the credits will work.)

There's also a tax credit for U.S.-produced battery modules — groups of cells bundled together that fit inside a battery pack. 

At $10/kWh, the credit would whack about one-third off the cost of assembling an EV battery pack, according to Bloomberg NEF.

Critical materials and minerals produced in the U.S. also get a 10% tax credit under the new law. 

That will help companies like Redwood Materials, which is investing $3.5 billion in Nevada for cathode and anode processing — essential work in the battery production process that's currently done mostly overseas.

There's also $2 billion in grants to retool existing auto plants to make clean vehicles, and up to $20 billion more in loans to build new factories. 

The intrigue: And yet automakers aren't happy about the law, largely because its strict supply chain requirements mean far fewer electric vehicles will qualify for big consumer tax credits right off the bat.

Yes, but: Over time, reshoring battery production should drive down the cost of EVs — and lessen U.S. dependence on China. 

The optimists' view: By incentivizing a domestic EV component supply chain, the law will help reduce automakers' costs — and they'll pass those savings along to consumers in the form of cheaper electric cars.

Between the lines: In essence, the U.S. has shifted the incentives for EV adoption from consumers to manufacturers — instead of making electrics cheaper for car buyers, the new law rewards carmakers for building EVs with U.S.-made batteries.

Lawmakers are not "just putting on new rules and saying, 'good luck.' They're putting tens of billions of dollars on the table to help [automakers] get there," said Joe Britton, executive director of the Zero Emission Transportation Association.

The bottom line: Automakers' scramble to meet domestic content requirements will lead to a rapid build-out of manufacturing capacity for electric vehicles, batteries, and the components and materials required to produce them.

The electric car Battery Belt is reshaping America’s heartland

The U.S. has shifted EV incentives from consumers to manufacturers

Automakers

The climate bill President Biden <a class="gtmContentClick" data-vars-link-text="signed into law" data-vars-click-url="https://www.axios.com/2022/08/16/biden-reconciliation-inflation-reduction-act" data-vars-item="in_content_link" href="https://www.axios.com/2022/08/16/biden-reconciliation-inflation-reduction-act" target="_self">signed into law</a> yesterday will open up tens of billions of dollars in subsidies for high-tech electric vehicle plants across the South and the Midwest.Why it matters: The package is a big down payment on addressing climate change and moving toward energy independence as the U.S. races to build <a class="gtmContentClick" data-vars-link-text="a domestic supply chain" data-vars-click-url="https://www.axios.com/2021/06/28/batteries-new-oil-electric-vehicles" data-vars-item="in_content_link" href="https://www.axios.com/2021/06/28/batteries-new-oil-electric-vehicles" target="_self">a domestic supply chain</a> for batteries and other critical materials.

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

Americans nationwide will likely face higher electric bills to pay for the next stage of the country's electric vehicle (EV) charger buildout — even if they don't drive an EV.

Why it matters: The U.S. will need a massive investment in public charging infrastructure to match the anticipated spike in EV demand. But such capital outlays don't make economic sense for many companies until there are more EVs on the road — which won't happen until there are more chargers.

It's a classic chicken-and-egg scenario that, in the near term, is likely to be solved by regulated public utilities that can pass on the investment burden to their customers over many years. 

What's happening: Power utilities across the country are planning to build extensive EV charging networks across their service areas. 

Minnesota-based Xcel Energy, for instance, last week announced perhaps the boldest such proposal: It plans to spend $170 million for about 750 fast-charging stations in Minnesota and Wisconsin over the next four years, part of a broader $300 million EV initiative. 

The states' public utility commissions need to approve the plan, which would ultimately be covered by Xcel ratepayers.

Xcel says the plan would encourage more of its customers to buy EVs by offering them a steep discount on electricity at its charging stations. 

But for everyone else — including those who can't afford an EV — it just means steeper electricity bills, given that many communities only have a single utility. 

The big picture: Virtually every state is confronting thorny economic and policy issues associated with the EV transition.

Who will build and maintain the required charging stations? Who will profit from them? And importantly, who will pay for them?

The intrigue: There's a battle emerging between utilities and gas stations, convenience stores and other private businesses also trying to get into the vehicle-charging game.

Stores and gas stations offering EV charging may wind up competing with the very same utilities they're paying for the power flowing into customers' cars.

Yes, but: Retailers say the way they're billed for power leaves them at a disadvantage.

Utilities apply so-called "demand charges" based on the maximum amount of power commercial ratepayers use at any point during their billing cycle.

So if just one customer plugs their EV into a 150-kWh fast-charger for 30 minutes, causing power demand to spike, a store would be billed at the peak demand level for the entire month.

"I'm terrified of getting hit with an EV demand charge," says Raina Shoemaker, who operates a family-run truck stop in Lincoln, Nebraska.

Context: This long-simmering fight comes as the federal government prepares to begin doling out $5 billion allocated in last year's bipartisan infrastructure bill so states can seed a coast-to-coast network of fast-charging stations.

Government guidelines say the taxpayer-funded chargers should be accessible to travelers, just off the interstate and have amenities like food and restrooms — which sounds a lot like existing gas stations and convenience stores. 

What to watch: Retailers want regulators to establish a fixed wholesale price for electricity to level the playing field.

What's next: Private businesses — not regulated utilities — will eventually own and operate most of the EV charging network because they know how to compete on things like price, service and amenities, says Mark Boyadjis, global technology lead at S&P Global Mobility.

But for now, utilities could have a head start, and electricity customers will pay.

Who will pay for all the electric car chargers? Pretty much everyone

Electric utilities are building EV charging networks — and passing along the costs

Illustration of a hundred dollar bill stylized as an electric symbol.

Electric vehicles

Americans nationwide will likely face higher electric bills to pay for the next stage of the country&#x27;s electric vehicle (EV) charger buildout — even if they don&#x27;t drive an EV.Why it matters: The U.S. will need a massive investment in public charging infrastructure to match the anticipated spike in EV demand. But such capital outlays don&#x27;t make economic sense for many companies until there are more EVs on the road — which won&#x27;t happen until there are more chargers.

If you're thinking of buying an electric car any time soon, you'd better place your order before President Biden signs the Democrats' big climate, tax and health care package into law — which could happen as soon as this weekend.

Why it matters: Democrats initially hoped to dramatically increase EV adoption via the bill, called the Inflation Reduction Act, by expanding the existing consumer tax credits for battery-powered vehicles.

But strict supply chain requirements added by Sen. Joe Manchin, Democrat of West Virginia, could instead slow the nation’s switch from gas-powered cars — at least in the short term.

Driving the news: To get Manchin to go along with the broader bill, the rest of the Senate Democrats agreed that only cars with batteries containing a certain percentage of materials sourced from North America or U.S. trading partners will qualify for the credits moving forward — even though that doesn't align with manufacturing reality. 

Although the auto industry and battery makers are racing to invest in a domestic supply chain, it will be years before those facilities are up and running. For now, the EV supply chain is mostly dominated by China — but any cars using Chinese-made battery components would be disqualified from tax credits under the new bill.

The bill tries to take that into account by phasing in the battery and minerals requirements over time, and the industry is getting lots of financial help to set up domestic production.

But certain provisions — like a new requirement that EVs must be assembled in North America to be eligible for the credits — will take effect immediately after the president signs the bill into law.

That will automatically slash the list of eligible vehicles from 72 to about 25, according to the Alliance for Automotive Innovation, an auto industry lobbying group. And when additional sourcing requirements go into effect in 2023, none of today's EVs would qualify for the full credit, the group says. 

Where it stands: EV buyers are currently eligible to receive a federal tax credit of up to $7,500, but the benefit is capped at 200,000 vehicles per manufacturer.

Early leaders like Tesla and General Motors have already hit that limit, so their customers are no longer eligible for the credit. Others are seeing the credits phased out.

The IRS has a full list of currently eligible vehicles.

What's new: The new bill would eliminate the manufacturer cap starting in 2023. But only vehicles under a certain price ($80,000 for trucks and SUVs, or $55,000 for all other vehicles) would qualify.

Eligible buyers also must make less than $150,000 if single, or $300,000 if married.

Used EV buyers could get a credit of up to $4,000.

Zoom out: To pass the new bill, Senate Democrats needed to be fully unified — giving Manchin lots of leverage to extract concessions.

Manchin wanted to tie the EV credit to a domestic manufacturing chain in part to reduce the industry's reliance on China.

What they're saying: "The $7,500 credit might exist on paper, but no vehicles will qualify for this purchase incentive over the next few years," John Bozzella, the Alliance for Automotive Innovation's president and CEO, writes in a blog post. 

"That’s a missed opportunity at a crucial time and a change that will surprise and disappoint customers in the market for a new vehicle," Bozzella writes, adding it will also be a "major setback" to the country's effort to hit 40-50% electric vehicle sales by 2030. 

Yes, but: People will buy EVs even without federal tax credits — especially if gas prices stay relatively high — but only if they're available. Inventories are tight, and prices are rising sharply.

In the long run, building a domestic EV supply chain should make electric cars cheaper — eventually.

What's next: The House of Representatives is expected to approve the bill Friday and quickly send it to Biden's desk. After that, figuring out which vehicles will qualify for what portion of the tax credit over time will take some doing. 

It's up to the U.S. Treasury Department to implement guidelines for measuring battery and mineral content by year-end. 

Then each automaker must figure out how much individual vehicles qualify. 

The bottom line: Lots of unknowns remain about this legislation's consumer impact.

If you want an electric car, buy one this week

Biden's about to sign a bill that would instantly make many EVs more expensive

Illustration of Benjamin Franklin in a car's rear view mirror, with a dollar-symbol air freshener.

If you&#x27;re thinking of buying an electric car any time soon, you&#x27;d better place your order before President Biden signs the Democrats&#x27; big <a class="gtmContentClick" data-vars-link-text="climate, tax and health care package" data-vars-click-url="https://www.axios.com/2022/08/07/senate-democrats-tax-climate-healthcare-reconciliation" data-vars-content-id="9b3d4e90-860c-4fd5-84ee-94d298ef866f" data-vars-headline="If you want an electric car, buy one this week" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2022/08/07/senate-democrats-tax-climate-healthcare-reconciliation" target="_self">climate, tax and health care package</a> into law — which could happen as soon as this weekend.Why it matters: Democrats <a class="gtmContentClick" data-vars-link-text="initially hoped" data-vars-click-url="https://www.axios.com/2022/07/29/climate-bill-electric-vehicle-credits" data-vars-content-id="9b3d4e90-860c-4fd5-84ee-94d298ef866f" data-vars-headline="If you want an electric car, buy one this week" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2022/07/29/climate-bill-electric-vehicle-credits" target="_self">initially hoped</a> to dramatically increase EV adoption via the bill, called the Inflation Reduction Act, by expanding the existing consumer tax credits for battery-powered vehicles.

Lyft is adding a new fleet of electric, autonomous vehicles (AVs) to its ride-hailing network in Las Vegas, bringing it one step closer to offering a full robotaxi service.

Why it matters: It's the latest milestone in the partnership between Lyft and Motional, one of a half-dozen leading autonomous tech companies. 

Rather than designing its own self-driving cars, Lyft is partnering with others to bring AVs to its network. 

Details: Motional's new AV is based on Hyundai's electric Ioniq 5, customized for driverless ride-hail operation.

It's equipped with more than 30 sensors — cameras, radar and lidar — and an onboard computer system that helps the vehicle see and understand the world around it. 

Riders can unlock the doors via the Lyft app and start the ride using an intuitive passenger display in the rear seat. 

If needed, they can also use the screen to contact remote agents.

Of note: For now, two vehicle operators will be present in the front seat, but passengers can get a feel for what the robotaxi experience will be like. 

What's next: The service is set to become fully driverless in 2023, and will then scale to other cities.

In Las Vegas, your Lyft driver could soon be a robot

The service will eventually expand to other cities

A woman prepares to board an autonomous Lyft robotaxi in Las Vegas

Lyft and Motional are developing robotaxi service in Las Vegas. Photo courtesy of Motional

Autonomous vehicles

Transportation

Automation and AI

Lyft is adding a new fleet of electric, autonomous vehicles (AVs) to its ride-hailing network in Las Vegas, bringing it one step closer to offering a full robotaxi service.Why it matters: It&#x27;s the latest milestone in the partnership between Lyft and Motional, one of a half-dozen leading autonomous tech companies.

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Stories

Flying taxis get a big boost from military money

The electric car Battery Belt is reshaping America’s heartland

In Las Vegas, your Lyft driver could soon be a robot

If you want an electric car, buy one this week

Who will pay for all the electric car chargers? Pretty much everyone

Newsletter editions

🚁 Flying taxis go military

🔋 The Battery Belt

🧠 Mental health "playbook"

✏️ Next-gen schools

🍾 Bachelor(ette) madness