U.S. set to offer $12 billion in subsidies to speed up EV production
- September 1, 2023
- Posted by: Quatro Strategies
- Categories: EVs & Battery Technology, United States
The Biden administration is set to offer $12 billion in grants and loans to help auto manufacturers and suppliers retrofit their plants to produce electric and advanced vehicles. The move aims to support the transition to electric vehicles (EVs) while ensuring that workers and communities are not left behind. The announcement comes amid concerns from automakers and the United Auto Workers (UAW) union about proposed environmental rules and the potential impact on jobs.
The UAW has expressed concerns that a rapid shift to EVs could put thousands of jobs at risk in states like Michigan, Ohio, Illinois, and Indiana. However, the policy announced by the Biden administration aims to address these concerns by supporting union partnerships and maintaining high pay and safety standards.
UAW President Shawn Fain welcomed the announcement, emphasizing the importance of strong union partnerships in the EV transition. President Biden stated that building a clean energy economy should benefit both auto companies and unionized workers.
The funding will include $3.5 billion for domestic battery manufacturers and $2 billion in grants from the Inflation Reduction Act, along with $10 billion in loans from the Energy Department’s Loans Program Office.
This initiative reflects the administration’s commitment to accelerating the adoption of EVs in the United States while safeguarding jobs and communities affected by the transition.
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