US Government announces $15.5 billion to support auto manufacturing industry’s transition to electric vehicle’s
September 4, 2023
As part of the US Government’s Investing in America agenda, the US Department of Energy (DOE) has announced a $15.5 billion package of funding and loans primarily focused on retooling existing factories to support the transition to electric vehicles (EVs). The funding includes $2 billion in grants and up to $10 billion in loans to support automotive manufacturing conversion projects that retain high-quality jobs in communities that currently host these manufacturing facilities.
The DOE also announced a Notice of Intent to make available $3.5 billion in funding to expand domestic manufacturing of batteries for electric vehicles and the nation’s grid, as well as for battery materials and components currently imported from other countries.
Converting and retrofitting America’s manufacturing plants
To encourage the conversion of long-standing facilities for the production of electric vehicles and components, the Domestic Manufacturing Conversion Grants for Electrified Vehicles programme, supported by President Biden’s Inflation Reduction Act, will provide cost-shared grants for the domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles.
This programme aims to expand the manufacturing of light-, medium-, and heavy-duty electrified vehicles and components, and to support commercial facilities, including those for vehicle assembly, component assembly, and related vehicle part manufacturing. The programme also looks to support a just transition for workers and communities that have a longer history in automotive manufacturing.
Leveraging new loan authority for automotive manufacturing conversion projects
Up to $10 billion in loans are available through the Advanced Technology Vehicles Manufacturing Loan Program for automotive manufacturing conversion projects. For projects that require financing to convert or directly replace an existing factory with high-quality jobs, DOE will assess the expected economic impact of the conversion relative to the existing facility. This assessment will include factors such as the project’s contribution to the local economy, employment history, anticipated employment, and the duration of the existing facility’s operation.
Bolstering American battery manufacturing, strengthening domestic supply chains
This notice of intent represents the second round of funding for battery materials processing and battery manufacturing grants to support the creation of new, retrofitted, and expanded domestic commercial facilities for battery materials processing and battery manufacturing grants to support the creation of new, retrofitted, and expanded domestic commercial facilities for battery materials, battery components, and cell manufacturing.
Round II will support the growth of domestic industry, aid manufacturing workers, and promote equity and environmental justice. The programme will assist communities with experienced auto workers and a history of producing vehicles, applicants with strong workforce practices, and those who plan to create high-quality jobs.
More detailed information about Investing in America is available here.
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