US electric vehicle manufacturing to get $2 billion boost
June 29, 2023
The US Department of Energy (DOE) has announced plans to invest $2 billion from the Inflation Reduction Act (IRA) to accelerate domestic manufacturing of electrified vehicles. These investments are expected to be made available in the coming months and aim to boost American production of clean energy technology; create and retain well paid jobs with the opportunity to join a union; and support President Biden’s national goals for electric vehicles to make up at least half of all new vehicle sales by 2030 as well as transition to a net-zero emissions economy by 2050.
The Inflation Reduction Act combines incentives for both consumers and businesses to purchase clean vehicles through programmes that aim to expand the manufacturing and sourcing of vehicle components and critical minerals in the United States. With $2 billion in funding from the IRA, the Domestic Manufacturing Conversion Grants for electrified vehicles programme will look to provide cost-shared grants for domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles.
It is anticipated that the funding opportunity announcement would strengthen the domestic manufacturing of light, medium, and heavy-duty electrified vehicles and support commercial facilities including those for vehicle assembly, component assembly, and related part manufacturing.
The programme will look to prioritise projects that refurbish or retool manufacturing facilities that have recently ceased operation or are expected to cease operation in the near future, with the goal of job preservation, including union jobs and wages. The programme also looks to maintain and improve production plants as well as work opportunities in communities that have played a crucial role in the automotive economy.
Those interested in applying for the upcoming funding opportunity can register to receive updates from the Office of Manufacturing and Energy Supply Chains.
