The Biden administration revealed on Thursday that it will provide manufacturers $15.5 billion to help retool current plants that make gas-powered vehicles and transform them into factories that make electric cars and trucks.
Inflation Reduction Act awards totaling $2 billion are part of the funding provided by the US Department of Energy for the conversion of US manufacturing facilities and increased production of hybrid, battery-powered, and hydrogen fuel-cell vehicles.
The DOE also plans to use the Advanced Technology Vehicles Manufacturing Loan Program to finance up to $10 billion in conversion projects.
The Bipartisan Infrastructure Act may also allocate $3.5 billion to support domestic battery manufacture.
Funds Unveiling by DOE:
The announcement comes at a challenging time for the American auto industry, in part because of mounting employee concerns that electrifying the country’s transportation sector will lead to job losses and a move away from traditional production locales.
Nearly a week after the United Auto Workers, the country’s largest auto union, unanimously voted in favor of allowing a strike against one or more of the Big Three automakers—General Motors, Ford Motor Co., as well as Stellantis, the parent company of Jeep and Chrysler—the DOE announced the funds.
In the event that a deal is not reached by September 14th, union members who are demanding pay raises, the restoration of cost-of-living adjustments, and the revival of pension plans may go on strike.