In the newest push towards electric vehicles, the U.S. Department of Energy on Thursday announced a funding package to help automakers upgrade their existing factories for the production of electric vehicles.
What Happened: The $15.5 billion package is meant to keep jobs within the communities where these manufacturing facilities currently exist. About $2 billion shall be made available in grants and up to $10 billion in loans. The department has also announced its intent to make $3.5 billion in funding available to enable the manufacturing of EV batteries, battery materials and components on home grounds.
"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," said U.S. Secretary of Energy Jennifer M. Granholm.
Projects and companies that have better labor conditions like those that pay top quartile wages in their industry shall be more likely to receive the financial support. Manufacturers can apply through DOE's Office of Manufacturing and Energy Supply Chains (MESC) or through DOE's Loan Program Office.
Why It Matters: The new announcement comes days after United Auto Workers (UAW) let know that 97% of its members from Ford Motor Co F, General Motors Co GM and Stellantis NV STLA have authorized a strike if the automakers do not give a fair deal.
The UAW has previously called for a ‘fair’ transition to EVs where the workers are not left behind, citing lower hourly wages and weaker safety standards in EV battery plants. A rapid transition could put thousands of jobs at risk, it noted.
Photo Courtesy: buffaloboy on Shutterstock.com
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
