Federal Energy Officials to Spend $15 Billion to Overhaul Automotive Factories

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The federal government plans to spend billions to help automotive manufacturing facilities retool operations to accommodate electric vehicles (EVs), the U.S. Department of Energy (DOE) announced.

The agency said the $15.5 billion package includes a combination of grants and loans. Here is the full breakdown:

  • The largest segment would provide $10 billion under the Advanced Technology Vehicles Manufacturing Loan Program for facilities that retain “high-quality” jobs while converting or replacing legacy plants with the production of EVs or their components.
  • Another $2 billion — allocated under a sweeping federal spending bill passed last year — would go toward cost-sharing grants enabling “long-standing” facilities to produce electrified or lower-emission vehicles, including hybrids, plug-in electric vehicles, and hydrogen fuel cell cars.
  • The remaining $3.5 billion, awarded under a 2021 infrastructure bill, would go toward producing batteries and battery materials, which would be utilized in electric cars and energy storage systems. The latest announcement represents the second phase of funding for advanced battery production.

The White House said the funding would help ensure a “just” transition from gasoline-powered vehicles to electric cars in coming years, including by protecting higher-wage manufacturing jobs and positions represented by collective bargaining agreements. The Biden Administration has set a goal for half of the nation’s new car sales to be electric by 2030.

Image Credit: Jenson / Shutterstock.com

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2023-09-01 20:18:37

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