The U.S. Department of Energy (DOE) announced a financial package of $15.5 billion in grants, loans and funds aimed at accelerating the transition to the new energy efficiency technologies. electric vehicles (EV).
The purpose of this financial package is to retool existing factories for the transition to electric vehicles, supporting good jobs and a just transition to this technology.
In a statement, DOE detailed that $2 billion will go in grants, $10 billion in loans to support auto manufacturing conversion projects that retain high-quality jobs in the communities that currently host these manufacturing facilities, while $3.5 billion is in funds to expand domestic electric vehicle battery manufacturing and the national grid.
"Together, these federal investments underscore President Biden's deep commitment to help retain and expand good-paying manufacturing jobs while empowering workers to have a strong voice and capture the economic benefits of the transition to clean energy," DOE noted.
The agency added that this agenda enhances national security by developing the domestic supply chains needed to achieve ambitious climate goals.
"President Biden is investing in the workforce and factories that made our country a global manufacturing powerhouse. Today's announcements show that President Biden understands that building the cars of the future also requires helping communities that face the challenge of transitioning away from the internal combustion engine," commented Jennifer M. Granholm, Secretary of Energy.
Grants Fund
With the support of the Inflation Reduction ActIn addition, subsidies for the conversion of the domestic manufacturing industry to electric vehicles will provide cost-sharing subsidies for the domestic production of efficient hybrid, plug-in hybrid electric, plug-in electric drive and hydrogen fuel cell electric vehicles.
DOE stated that this program will expand the manufacture of light-, medium-, and heavy-duty electrified vehicles and components and support commercial facilities, including those for vehicle assembly, component assembly, and related vehicle parts manufacturing.
The program aims to support a just transition for workers and communities in the transition to electrified transportation, with special attention to communities that support facilities with a longer history of automobile manufacturing, he added.
Preference will be given to projects that are committed to paying high wages to production workers and maintaining collective bargaining agreements.
Loans for conversion projects
DOE is making available up to $10 billion in loans for applications under the Advanced Technology Vehicle Manufacturing Loan Program for auto manufacturing conversion projects that retain high-quality jobs in communities currently home to manufacturing facilities.
Manufacturers that take out these loans will be required to retain high wages and benefits, including labor rights, and commitments such as keeping existing facilities open until a new facility is completed, in the case of facility replacement projects.
For projects seeking funding to convert or directly replace an existing manufacturing facility that has high-quality jobs, DOE will evaluate the projected economic impacts of the facility conversion relative to the existing facility, including factors such as contribution to the local economy, employment history, anticipated employment, and length of existence.
Boosting battery production
The financial package to accelerate the transition to electric vehicles includes $3.5 billion to boost production of advanced batteries and battery materials that are critical to the rapidly growing clean energy industries of the future, including electric vehicles and energy storage.
This is the second round of funding for battery materials processing and manufacturing grants to support the creation of new, modernized and expanded domestic commercial facilities for battery materials, battery components and cell manufacturing, DOE noted.
This financial package will grow the U.S. economy from the bottom up and in the middle by rebuilding our nation's infrastructure, create good-paying jobs and support collective bargaining, and build a clean energy economy that combats the climate crisis and makes communities more resilient, DOE said.
Source: U.S. Department of Energy