US DOE Announces $1.7 Billion Grant to Support Auto Industry Transition to Electric Vehicles
Key Ideas
  • The US DOE has allocated $1.7 billion to assist auto companies in converting closed or at-risk units to produce electric vehicles and components.
  • The funding aims to support the manufacturing of a wide range of electrified vehicles and components across eight states.
  • The initiative also includes investments in hydrogen fuel cell electric vehicles and aligns with the goal of cutting pollution from the transportation sector.
  • Award selections will prioritize commitments to workers and communities, as well as environmental considerations for clean manufacturing.
The US Department of Energy (DOE) has unveiled a $1.7 billion funding initiative to help auto companies transition 11 closed or at-risk units into manufacturing hubs for electric vehicles and related components. This move is poised to benefit auto manufacturing and assembly facilities in eight states – Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia. The funding will be sourced from the Domestic Auto Manufacturing Conversion Grants program, which is supported by the US Inflation Reduction Act. The program emphasizes the production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles. It targets the expansion of manufacturing facilities for light-, medium-, and heavy-duty electrified vehicles and components, encompassing vehicle assembly, component assembly, and related part manufacturing. US Secretary of Energy Jennifer M Granholm highlighted the importance of these grants in helping the American automotive industry remain competitive and sustainable, particularly in light of global investments in electric vehicles. The initiative was also praised by John Podesta, Senior Advisor to the President for International Climate Policy, for its contribution to combating climate change through pollution reduction in the transportation sector. The chosen companies will engage in negotiations to secure grants for manufacturing various automotive products, ranging from electric motorcycles and school bus parts to heavy-duty commercial truck batteries and electric SUVs. These selections will be subject to ensuring commitments to workers and communities are met, alongside environmental reviews to uphold clean and environmentally responsible manufacturing practices. The DOE's emphasis on mitigating environmental impact aligns with the current administration's focus on sustainable production.
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