Auto Industry’s Shift to EVs Gets $12 Billion Boost

Source: Wall Street Journal


The Energy Department said it is planning to provide up to $12 billion in funding for automakers to retrofit existing manufacturing facilities in the U.S. for the production of electric and hybrid vehicles. 

Most of the funding, some $10 billion, will be allocated from an advanced-vehicle manufacturing program overseen by the department’s Loan Programs Office, Energy Secretary Jennifer Granholm said. The other $2 billion will come from funds allocated by last year’s Inflation Reduction Act.

The funds will help provide jobs in longstanding automaking communities as the auto industry transitions to electric vehicles, Granholm said. The Energy Department said it would favor projects that are likely to retain collective bargaining agreements and have high wages. 

The department also plans to make $3.5 billion available for domestic battery manufacturing. Companies and the U.S. government have been shelling out billions of dollars to establish a North American supply chain for rechargeable battery materials as it races to catch up with China, which dominates the battery supply chain.

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