U.S. Announces $12 Billion Fund for Advanced Vehicles and Suppliers

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Written By Jennifer Joslyn

The U.S. Energy Secretary Jennifer Granholm revealed plans for the Biden Administration to allocate $12 billion in loans and grants to automakers and suppliers, aimed at facilitating the transformation of their facilities to produce electric vehicles (EVs) and other advanced vehicle technologies. The initiative seeks to support a smooth transition for workers and communities as the automotive industry shifts towards EVs. The funding includes approximately $2 billion in grants sourced from the 2022 Inflation Reduction Act and an additional $10 billion from the Energy Department's Loans Program Office.

Notably, the grant applications will not enforce specific labor requirements, though projects with favorable labor conditions are expected to have an enhanced chance of receiving funding. In tandem with the support for advanced vehicles, the Biden administration also intends to provide $3.5 billion for bolstering domestic car battery manufacturing. This comprehensive effort aligns with President Biden's vision of cultivating a clean energy economy that benefits both auto companies and the longstanding unionized workforce, positioning the U.S. at the forefront of sustainable transportation innovation.

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Jennifer Joslyn
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