The US Department of Energy (DoE) has unveiled $1.7bn in funding for the conversion of existing motor vehicle manufacturing facilities to support the manufacturing of electric vehicles (Evs).
Granted as part of President Biden’s Investing in America agenda, the new commitment will help retool or retrofit 11 shuttered or at-risk auto manufacturing and assembly plants to boost the production of EVs and their supply chain.
The initiative will take place across eight states, namely Michigan, Ohio, Pennsylvania, Georgia, Illinois, Maryland, Indiana, and Virginia.
According to the DoE, the investments will generate and sustain thousands of good-paying union jobs. They are also expected to support the American auto communities.
US Secretary of Energy Jennifer Granholm said: “There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry.
“Even as our competitors invest heavily in electric vehicles, these grants ensure that our automotive industry stays competitive—and does it in the communities and with the workforce that have supported the auto industry for generations.”
Under the Domestic Manufacturing Auto Conversion Grants programme, the selected participants will compete for awards to enable them to manufacture products across various segments of the automotive supply chain.
These include parts for electric motorcycles, school buses, hybrid powertrains, heavy-duty commercial truck batteries, and electric SUVs.
The programme also contributes towards the Biden-Harris administration’s initiatives to bolster domestic supply chains, support American workers, and enhance the country’s global leadership in manufacturing.
Once awarded, the selected projects are anticipated to create more than 2,900 new high-quality jobs. The initiative will also ensure that over 15,000 highly skilled union workers are retained across all eleven facilities.
