DOE to award $15.5B to auto makers to transition factories for EVs
The U.S. Department of Energy (DOE) has made available a $15.5 billion package of funding and loans for refurbishing existing auto plants so they can make the transition to manufacturing electric vehicles (EVs).
The grant initiative includes $2 billion in grants and up to $10 billion in loans to support automotive manufacturing conversion projects that retain jobs in communities that currently host these manufacturing facilities. Higher scores will be given to projects that are likely to retain collective bargaining agreements or have an existing high-wage hourly production workforce.
The program will provide cost-shared grants for domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles.
In addition, the DOE made available $3.5 billion in funding to expand domestic manufacturing of batteries for electric vehicles and the nation’s grid, as well as for battery materials and components currently imported from other countries.
“President Biden is investing in the workforce and factories that made our country a global manufacturing powerhouse,” U.S. Secretary of Energy Jennifer Granholm said. “Today’s announcements show that President Biden understands that building the cars of the future also necessitates helping the communities challenged by the transition away from the internal combustion engine.”
Those interested in applying for the funding should submit concept papers by Oct. 2. The deadline for full applications is Dec. 7.
Both the conversion grant funding opportunity and battery manufacturing notice of intent will be administered by the DOE’s Office of Manufacturing and Energy Supply Chains (MESC).
