Biden-Harris Administration Announces $15.5 Billion to Support a Strong and Just Transition to Electric Vehicles, and Support for Retooling Existing Plants and Rehiring Existing Workers.
Department of Energy is Announcing Funding that will Retrofit Existing Automotive Manufacturing Facilities Across the Country, Expand and Retain High-Paying Auto Manufacturing Jobs, and Bolster Domestic Supply Chains, Part of President Biden’s Investing in America Agenda Strategy to Create Not Just More Jobs But Good Jobs, Including Union Jobs
As part of President Biden’s Investing in America agenda, the U.S. Department of Energy (DOE) announced a $15.5 billion package of funding and loans primarily focused on retooling existing factories for the transition to electric vehicles (EVs)—supporting good jobs and a just transition to EVs. This includes making available $2 billion in grants and up to $10 billion in loans to support automotive manufacturing conversion projects that retain high-quality jobs in communities that currently host these manufacturing facilities. In the Domestic Conversion Grant Program, higher scores will be given to projects that are likely to retain collective bargaining agreements and/or those that have an existing high-quality, high-wage hourly production workforce, such as applicants that currently pay top quartile wages in their industry. The Department also announced a Notice of Intent to make available $3.5 billion in funding to expand domestic manufacturing of batteries for electric vehicles and the nation’s grid, as well for battery materials and components currently imported from other countries. The Notice of Intent outlines how DOE will support growing domestic industry while also supporting manufacturing workers and promoting equity and environmental justice. Together, these federal investments underscore President Biden’s deep commitment to helping retain and expand high-paying manufacturing jobs while empowering workers to have a strong voice in and capture the economic benefits of the clean energy transition. The President's Investing in America agenda is also enhancing our national security by building up the domestic supply chains necessary to reach the Administration’s ambitious climate goals.
“President Biden is investing in the workforce and factories that made our country a global manufacturing powerhouse,” said U.S. Secretary of Energy Jennifer M. Granholm. “Today’s announcements show that President Biden understands that building the cars of the future also necessitates helping the communities challenged by the transition away from the internal combustion engine.”
Depending on their capital needs, manufacturers can apply to receive assistance via financial grants through DOE’s Office of Manufacturing and Energy Supply Chains (MESC) or preferable debt financing through DOE’s Loan Program Office.
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Both the conversion grant funding opportunity and battery manufacturing notice of intent will be administered by DOE’s Office of Manufacturing and Energy Supply Chains (MESC). Learn more about MESC’s mission to strengthen and secure manufacturing and energy supply chains needed to modernize the nation’s energy infrastructure and support a clean and equitable energy transition.
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