As part of President Joe Biden's "Investing in America" agenda, the DOE funding will allocate $2 billion in grants and offer up to $10 billion in loans to support automotive manufacturing conversion projects
The US DOE announces a $15.5bn package of funding and loans to bolster just transition to EVs. (Credit: CHUTTERSNAP on Unsplash)
The US Department of Energy (DOE) has announced a $15.5bn package of funding and loans to bolster the transition to electric vehicles (EVs) and to support retooling at existing plants and rehiring existing workers.
Announced as a part of US President Joe Biden’s “Investing in America” agenda, the DOE funding will make $2bn in grants and up to $10bn in loans available for supporting automotive manufacturing conversion projects.
According to the DOE, the grants will expand the manufacturing of light, medium, and heavy-duty electrified vehicles and components.
Besides, it is expected to support commercial facilities including those for assembling vehicles, component assembly, and associated vehicle part manufacturing.
The department has also issued a notice of intent to release $3.5bn in funding to grow the domestic manufacturing of batteries for EVs and the national grid.
It also represents the second round of funding for battery materials processing and battery manufacturing grants to support new, retrofitted, and expanded domestic commercial facilities for battery materials, battery components, and manufacturing of cells.
Furthermore, the investments are projected to retain and expand high-paying manufacturing jobs along with supporting workers in reaping the economic benefits of the clean energy transition.
US Secretary of Energy Jennifer Granholm said: “President Biden is investing in the workforce and factories that made our country a global manufacturing powerhouse.
“Today’s announcements show that President Biden understands that building the cars of the future also necessitates helping the communities challenged by the transition away from the internal combustion engine.”
Manufacturers can apply to get assistance via financial grants through DOE’s Office of Manufacturing and Energy Supply Chains (MESC) or preferable debt financing through the Loan Program Office of the department, based on their capital requirements.
Last year, the DOE awarded $2.8bn of funding from Biden’s Bipartisan Infrastructure Law to 20 companies for projects that could help expand the manufacturing of batteries in the US for EVs and electric grid.