TL/DR –
Biden’s crew unveiled a $1.7 billion investment to revamp 11 auto factories, and it’s all about that electric vehicle life. But with the election looming, this green money might be hitting the road faster than a Tesla on a straightaway. So, while the funding might help create jobs and prevent factories from closing, it’s a bit of a cliffhanger – we gotta wait and see how this race against the climate clock pans out.
The Energy Department recently announced $1.7 billion in funds to pivot 11 auto factories to electric vehicle (EV) production, primarily targeting facilities at risk of closure without federal intervention.
This funding shows the Biden administration’s sprint to distribute climate funding before the November elections. If former president Donald Trump regains office, he could attempt to cut federal spending focused on accelerating America’s clean energy transition and electric vehicles.
The funding mostly comes from President Biden’s 2022 climate law, the Inflation Reduction Act, which also offers tax credits of up to $7,500 for EV buyers.
The factories are spread across eight states, including key states in the 2024 election such as Georgia, Michigan, Ohio, and Pennsylvania. All facilities are unionized, unlike many EV plants in Southern states less friendly to union labor.
Biden said, “Building a clean energy economy can and should be a win-win for union autoworkers and automakers…by helping auto companies retool, reboot, and rehire in the same factories and communities.”
The funding is not final and is contingent upon successful negotiations with companies. If awarded, it could create more than 2,900 new jobs while saving over 15,000 union positions in danger of being cut, according to the Energy Department.
The funding also arrives amid fears in Washington about China’s dominance of global supply chains for EVs and their components. To prevent a flood of low-cost Chinese EVs from damaging domestic manufacturing, Biden in May quadrupled tariffs on Chinese EVs to 100 percent.
The funding announced will also help General Motors convert its plant in Lansing, Mich., from producing internal combustion engine vehicles to EVs. The Energy Department said this investment is expected to retain over 650 jobs while creating 50 new jobs.
Another $89 million will aid Harley-Davidson in retooling its factory in York, Pa. to produce electric motorcycles. And $32.6 million will go to American Autoparts Inc., a subsidiary of Hyundai Mobis, to create plug-in hybrid electric cars and trucks in Toledo.
Without the injection of federal cash, many of these facilities faced a substantial risk of closure, said Sam Abuelsamid, an EV expert at market intelligence firm Guidehouse Insights.
Original Story at www.washingtonpost.com
