Biden Admin announces $50 million for EV production, union jobs

Author

Colin Velez
August 16, 2024

The Biden Administration has announced $50 million to help automotive manufacturers retool their facilities for electric vehicle production.

Why this matters: With automakers canceling or postponing EV-related projects left and right, the White House is hoping to rally support behind electrification, both from disillusioned companies and their workers, who also stand to benefit from the allocated funds.

Driving the news: The subsidies will be distributed through the Department of Energy’s (DOE) Domestic Automotive Manufacturing Conversion Grant Program, funded by the Inflation Reduction Act.

  • Under the program’s rules, six states are eligible for funds, ranging from $18.41 million to $4.06 million. Each state has until mid-October to apply for the funds, just one month before the 2024 Presidential election.

  • Small to medium-sized auto suppliers in each state will use the money to equip their businesses with the equipment needed to support EV manufacturing. According to Axios, the DEO believes the funds can support retooling for roughly 25 facilities.

  • Another goal of the program is to support union jobs as companies electrify their business models and end or slow down internal combustion engine production.

Big picture: This is the latest in a series of initiatives from the Biden Administration targeting domestic EV manufacturing.

  • In July, the DOE allocated another $1.7 billion to maintain or reopen plants targeted for shutdowns by manufacturers hoping to save money as they prepare for EVs.

  • The department is also providing $1.5 million to help teams from Universities in Indiana, Michigan, and Illinois develop an EV transition playbook for the industry.

Zooming in: Electric cars have become a major talking point in both the Democratic and Republican nominee presidential campaigns, with Donald Trump and JD Vance promising to end Biden-led initiatives spurring EV manufacturing. Announcing funds months before his presidency ends signals the White House has some hope its focus on battery-powered vehicles will continue into 2025.

Bottom line: It will be interesting to see how the final days of the Biden Administration tackle the EV transition. And if the pendulum swings back to the right this election cycle, it will be even more interesting to see how the industry handles an end to the various subsidies that have spurred EV production.

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