According to Energy Secretary Jennifer Granholm, the United States government plans to make $12 billion available in grants and loans to support automakers and suppliers in retrofitting their plants for the production of electric and other advanced vehicles. Additionally, domestic battery manufacturers will receive $3.5 billion in funding.
The move aims to accelerate the adoption of electric vehicles and address concerns raised by automakers and the United Auto Workers (UAW) union regarding proposed environmental regulations. The UAW has warned that a rapid transition to EVs could endanger jobs in states like Michigan, Ohio, Illinois, and Indiana. The funds will be sourced partially from the Inflation Reduction Act and the Energy Department’s Loans Program Office.