The U.S. Department of Energy on Thursday announced $15.5 billion in funding and loans focused on retooling factories to build electric vehicles.
The total includes $2 billion in grants and up to $10 billion in loans to support automotive manufacturing conversion projects that keep high-quality jobs in their current communities.
“President Biden is investing in the workforce and factories that made our country a global manufacturing powerhouse,” said Secretary of Energy Jennifer M. Granholm. “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.”
The funding includes the Domestic Conversion Grant Program, which will prioritize projects that are likely to retain collective bargaining agreements, or those with existing high-wage workers who get the top quartile wages in their industry.
The department also announced a notice of intent to make $3.5 billion in funding available to expand domestic manufacturing of batteries for electric vehicles and the grid, as well as for battery materials and components imported from other countries.
Manufacturers can apply to receive assistance via financial grants through DOE’s Office of Manufacturing Energy Supply Chains, or debt financing through its Loan Program Office.
The Inflation Reduction Act set up the $2 billion Domestic Manufacturing Conversion Grant, which will provide cost-shared grants for the domestic production of hybrid, plug-in hybrid, electric drive and hydrogen fuel cell electric vehicles. The program is aimed at expanding manufacturing for all classes of electrified vehicles, component assembly and related vehicle part manufacturing.
Projects picked for the funding also must contribute to the President’s Justice40 Initiative, which aims to increase diversity and equity in the workforce and ensure every community benefits from the transition to a clean energy future.
DOE wants concept papers for the grants by Oct. 2 and full applications by Dec. 7.
The department also is making another $10 billion in loans available under the Advanced Technology Vehicles Manufacturing Loan Program for manufacturing conversion projects that retain high-quality jobs.
Examples include retaining high wages and benefits, including workplace rights, or commitments such as keeping the existing facility open until a new facility is complete. For projects that would replace an existing factory, DOE will assess its projected economic impact and compare that to the existing facility’s.
The final $3.5 billion is meant to bolster domestic battery manufacturing and the production of battery materials. The funding comes from the Infrastructure Investment and Jobs Act.
A notice of intent outlines how the round of funding will support growing the domestic industry, supporting workers and promoting equity. The program will support communities that are home to experienced autoworkers, DOE said.
