The United States Department of Energy has allocated $15.5 billion to support the transition to electric vehicles.
As part of President Joe Biden’s US Investment Agenda, much of the money will go to automakers and suppliers to build their plants for electric, hybrid and hydrogen fuel cell electric vehicles. The agency said. Thursday. A total of $12 billion ($2 billion in grants and $10 billion in loans) will directly support automotive manufacturing conversion projects for light, medium and heavy-duty EVs.
The remaining $3.5 billion is for the expansion of domestically produced batteries for EVs and the nation’s grid, as well as battery materials and components that have historically been imported from other countries. This is the second tranche of funding for battery materials and manufacturing that DOE has provided.
In the last few years, there have been various car manufacturers and battery manufacturers Joint plans to build battery manufacturing facilities On American soil. The onshore storm began as the Covid-19 pandemic shut down supply chains and made it difficult to find critical battery materials, most of which are made in China. In the year The August 2022 Anti-Inflation Act only boosted domestic manufacturing efforts — the IRA is loaded with incentives for manufacturers, though the Treasury still has to provide guidance on most of the bill’s initiatives.
Federal investments in domestic EV and battery manufacturing are consistent with the Biden administration’s commitment to bringing high-paying manufacturing jobs to Americans, particularly in Conservative states Like Georgia, North Carolina and Tennessee.
Manufacturers can apply for grants through DOE’s Office of Manufacturing and Energy Supply Chains or for select debt financing through DOE’s Office of Loan Programs. Priority will be given to companies with plants in communities with a history of automotive manufacturing and projects that decide to pay higher wages to production workers and protect collective bargaining agreements.