US Offering $12B To Suppliers To Produce EVs

( – The Department of Energy last week announced $12 billion in loans and grants to assist the automobile industry in transitioning to manufacturing electric vehicles, CNN reported.

The department plans to provide $10 billion in loans and another $2 billion in grants to support automakers and suppliers as they convert existing facilities and build new facilities for the manufacture of hybrid and electric vehicles.

The program is designed to allow companies to refurbish or build factories in communities that already have manufacturing facilities while boosting the domestic manufacturing of electric vehicles.

In a statement last Thursday, Energy Secretary Jennifer Granholm touted the new program, claiming that it shows that the Biden administration understands that the transition to “the cars of the future” requires helping communities that will face challenges as the country is forced to transition away from gas-powered vehicles.

Additionally, the Department of Energy said it will spend another $3.5 billion to boost the domestic production of lithium/ion batteries and materials as part of its effort to transition to so-called clean energy and electric vehicles.

In a statement applauding the $12 billion in loans and grants, United Auto Workers President Shawn Fain said the program “makes it clear” to the auto industry that the transition to electric vehicles “must include strong union partnerships.”

The United Auto Workers union has so far not endorsed Joe Biden in his reelection bid over concerns about the president’s policies on electric vehicles. Fain said in May that the Biden administration is spending billions without any “commitment to workers.”

Earlier this year, the Biden administration announced that it wants electric vehicles to account for two-thirds of new cars sold in the United States by 2032.

In late 2021, the Biden administration directed the federal government to pursue net zero carbon emissions by 2050.

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