The Biden Administration announced it is providing $12 billion in grants and loans to help automakers convert their current manufacturing facilities into facilities capable of producing electric vehicles.
$10 million of the funding will come from the Energy Department’s Loan Program Office and the remaining $2 billion from Inflation Reduction Act grants. The Energy Department has also agreed to provide an additional $3.5 billion for domestic battery manufacturers.
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“While we transition to EVs, we want to ensure that workers can transition in place, that there is no worker, no community left behind,” said Energy Secretary Jennifer Granholm.
This funding directly aligns with the Biden Administration’s efforts to advance more fuel-efficient vehicles to help combat climate change by providing funding opportunities, tax credits, and regulations.
While there are no specific requirements needed to receive funding, the Energy Department said it would prioritize facilities that cultivate a good working environment, which includes paying high wages and committing to retaining or expanding collective bargaining agreements.
The announcement comes shortly after the United Auto Workers (UAW) union began criticizing the White House over proposed environmental rules meant to help transition the industry to clean energy.
But, when asked about his opinion on the new funding program, Union President Shawn Fain said, “We are glad to see the Biden Administration doing its part to reject the false choice between a good job and a green job. This new policy makes clear to employers that the EV transition must include strong union partnerships with the high pay and safety standards that generations of UAW members have fought for and won.”
