The Biden Administration investment in EV manufacturing is taking a significant step forward as the U.S. Department of Energy (DOE) announced $1.7 billion in grants to convert 11 at-risk auto manufacturing facilities to electric vehicle (EV) production. The 11 facilities are located in eight states: Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia. This funding stems from the president’s ongoing campaign to elevate American EV manufacturing to align with his plans to address climate change.
The nearly $2 billion investment is said to help create and retain jobs within American vehicle manufacturing facilities and secure funding to install the necessary equipment to manufacture electric vehicles.
From the Verge of Closure to New Purpose
Of the facilities eligible to receive funding, many were reportedly close to closure or had serious concerns about remaining operational. With climate change activists’ continued efforts to push toward lower-emission vehicles, the automotive industry has adapted many of its facilities to accommodate hybrid and electric vehicle manufacturing. However, other manufacturing facilities were hard-pressed with the cost of updated equipment, personnel training, and production costs.
The president’s funding allows potentially struggling auto manufacturers to install the necessary manufacturing equipment, provide training to employees, and increase EV production. Individual production hubs will compete for funding designated by the Domestic Manufacturing Auto Conversion Grants program. Funding is up to negotiation, ensuring company commitment to employees and American manufacturer’s jobs.
Job Creation and Retention
U.S. Secretary of Energy Jennifer M. Granholm said, “There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry. Even as our competitors invest heavily in electric vehicles, these grants ensure that our automotive industry stays competitive—and does it in the communities and with the workforce that have supported the auto industry for generations.”
Once funds are allocated and the production facilities are up and running, they’ll be able to craft and supply electric vehicles, batteries, vital components for electric motorcycles, school buses, heavy-duty commercial truck batteries, electric SUVs, hybrid powertrains, and more.
“Today’s announcement from the Department of Energy is a big win for the American people and demonstrates President Biden’s bold vision for how we are choosing to take on the climate crisis, with America’s workers leading the way. This ground-breaking program is central to catalyzing expansion of industrial capacity to help us meet the President’s climate goals and allow tens of thousands of skilled American workers to participate in the great comeback story of American manufacturing,” said Assistant to the President and National Climate Advisor Ali Zaidi.
The New Clean Energy Economy
President Biden has made his position on climate change abundantly clear throughout his presidency. Creating and retaining jobs within electric automotive manufacturing sectors is a significant part of his ongoing push toward cleaner American manufacturing as a pillar of the new clean energy economy.
In an interview with ABC News, U.S. Secretary of Energy Jennifer Granholm noted a huge demand for electric vehicles both globally and within the United States. Despite other countries historically leading the charge in electric vehicle manufacturing, Secretary Granholm claims this injection of funding has the potential to turn that around, making the United States a world leader in EV manufacturing.
“President Biden set out to build a clean energy economy that benefits everyone. Today’s awards from the Department of Energy help bring that vision to life by investing in the future of the auto industry, creating thousands of good-paying union jobs, and tackling the existential threat of climate change by cutting pollution from the transportation sector,” said John Podesta, Senior Advisor to the President for International Climate Policy.
Could Be More than Meets the Eye
While the funding undoubtedly provides a significant boon to electric vehicle manufacturing, some experts are skeptical, claiming there could be political motivation behind the president’s announcement. The included manufacturers are located in several pivotal swing states, leading some to speculate President Biden’s motivation could be fueled by the upcoming election in November.
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