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WASHINGTON DC, 3 September 2023: The Biden-Harris Administration, as part of its commitment to advancing clean energy and job creation, has announced a significant investment of USD 15.5bn through the US Department of Energy (DOE). The primary focus of this funding is the transformation of existing manufacturing facilities to support the production of electric vehicles (EV). This initiative not only strengthens the domestic supply chain but also emphasizes job retention and equity in line with President Biden’s clean energy agenda.
Fueling America’s Electric Vehicle Transition
In alignment with President Biden’s “Investing in America” agenda, the DOE is channeling USD 15.5bn into retooling existing factories for the production of EVs. This comprehensive approach includes USD 2bn in grants and up to USD 10bn in loans for automotive manufacturing conversion projects aimed at preserving high-quality jobs in communities hosting these manufacturing facilities. Projects that maintain collective bargaining agreements and offer competitive wages will receive higher scores in the selection process.
Supporting Domestic Battery Manufacturing
The DOE is also taking substantial steps to promote the production of batteries crucial to the EV and clean energy industries. A Notice of Intent has been issued for a USD 3.5bn funding opportunity dedicated to expanding domestic battery manufacturing. This includes batteries for EVs and grid applications, as well as battery materials and components currently imported from other countries. This initiative aligns with President Biden’s vision for a robust domestic battery supply chain by 2030, further enhancing the nation’s clean energy infrastructure.
Empowering a Just Transition
The DOE’s funding programs prioritize equitable development and job creation. By supporting the Domestic Manufacturing Conversion Grants for electrified vehicles program, the DOE aims to assist communities transitioning to electrified transportation. Preference is given to projects that commit to high wages for production workers and the maintenance of collective bargaining agreements. Furthermore, projects selected for funding must contribute to the President’s Justice40 Initiative, designed to advance diversity, equity, and inclusion in the clean energy workforce.
Application Details and Deadlines
For manufacturers seeking assistance, the DOE offers financial grants through the Office of Manufacturing and Energy Supply Chains (MESC) and preferable debt financing through the Loan Program Office. Concept papers for the Domestic Manufacturing Conversion Grants are due by October 2, 2023, with the full application deadline set for December 7, 2023. Manufacturers interested in loans can find more information on application procedures on the DOE’s website.
Reviving American Manufacturing
The investment extends to automotive manufacturing conversion projects, with a focus on retaining high-quality jobs in communities that currently host these facilities. For instance, projects aiming to convert or replace existing factories while preserving high wages and workplace rights are eligible for up to USD 10bn in loans. The DOE will assess the economic impacts of facility conversions concerning the local economy, employment history, anticipated employment, and duration of existence.
Building a Sustainable Future
These initiatives reflect President Biden’s commitment to the workforce and the transition to clean energy. By investing in factories with a history of automotive manufacturing, the administration is not only advancing the clean energy agenda but also creating economic opportunities for communities and supporting collective bargaining.
Conclusion
The US Department of Energy’s substantial investment of USD 15.5bn in EV manufacturing and battery production underscores the administration’s dedication to clean energy and job creation. These initiatives pave the way for a sustainable future while ensuring equitable access to the benefits of the clean energy transition. Stay tuned for updates on how these investments will shape America’s clean energy landscape.
