The US DOE has introduced a $15.5 billion bundle of funding and loans primarily centered on retooling present factories for the transition to EVs. This contains $2 billion in grants and as much as $10 billion in loans to help automotive manufacturing conversion initiatives, together with $3.5 billion in funding to broaden home manufacturing of batteries, battery supplies and elements for EVs and {the electrical} grid.

Overriding targets of those applications embody constructing home provide chains to cut back dependence on abroad suppliers, and retaining and/or increasing high-quality jobs within the automotive industries.

“President Biden is investing within the workforce and factories that made our nation a worldwide manufacturing powerhouse,” mentioned Secretary of Power Jennifer M. Granholm. “Constructing the automobiles of the long run additionally necessitates serving to the communities challenged by the transition away from the interior combustion engine.”  

The Home Manufacturing Conversion Grants program will present $2 billion in cost-shared grants for manufacturing of hybrid, plug-in hybrid, battery-electric and hydrogen gasoline cell automobiles. This program will help business amenities, particularly these situated in communities with lengthy histories in automotive manufacturing. Choice may even be given to initiatives that decide to pay excessive wages for manufacturing employees and keep collective bargaining agreements. 

Idea papers are due October 2, 2023, and the deadline for full functions is December 7, 2023.

DOE can be making as much as $10 billion in loans obtainable below the Superior Know-how Autos Manufacturing Mortgage Program for automotive manufacturing conversion initiatives that retain high-quality jobs in communities that at present host manufacturing amenities. DOE will assess the projected financial impacts of the power conversion relative to the present facility, together with components akin to contribution to the native financial system, employment historical past and anticipated employment. 

DOE additionally plans to take a position round $3.5 billion to spice up manufacturing of superior batteries and battery supplies for EVs and power storage. This discover of intent—made potential by the President’s Bipartisan Infrastructure Regulation—represents the second spherical of funding for the creation of latest, retrofitted and expanded home amenities for battery supplies, battery elements and cell manufacturing. This system will help communities with skilled auto employees and a historical past of manufacturing automobiles. 

Supply: DOE