The US government is giving billions to make more EVs

American automakers and auto parts suppliers could receive billions in grants from the Joe Biden administration, in addition to other incentives. As Energy Secretary Jennifer Granholm said this Thursday (31), the administration’s idea is to adapt factories to produce electric vehicles.

For those in a hurry:

• US President Joe Biden’s administration has provided $12 billion in grants and loans to automakers and auto suppliers to upgrade their factories;
• The initiative seeks to accelerate the conversion of existing automobile plants into electric vehicle manufacturing hubs;
• The funding comes from a combination of $2 billion in Inflation Reduction Act grants and $10 billion in loans from the Department of Energy’s Office of Loan Programs;
• Additionally, the administration plans to make $3.5 billion available to support domestic battery manufacturers;
• The move is in response to the concerns of the auto manufacturers and auto workers union in the country;
• The union has warned that the rapid transition to electric vehicles in states such as Michigan, Ohio, Illinois and Indiana could lead to thousands of job losses.

The Biden administration is providing US$12 billion (about R$60 billion) in subsidies. Reuters This Thursday. The administration’s comprehensive approach also includes a $3.5 billion (R$17.3 billion) allocation to support domestic battery makers.

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The funding distribution includes US$ 2 billion (R$ 10 billion) in grants from the Democrat-passed De-Inflation Act in 2022 and US$ 10 billion (R$ 50 billion) in loans facilitated by the office. Department of Energy Credit.

President Joe Biden said in a statement:

Building a clean energy economy could offer a win-win opportunity for auto companies and unionized workers who have anchored the American economy for decades.

Electric vehicles and concerns in America

The White House is seeking to address concerns from the Auto Manufacturers and Auto Workers Union (UAW). In areas such as Michigan, Ohio, Illinois and Indiana, for example, the union warned of job losses due to the rapid transition to electric vehicles.

Granholm, the former governor of Michigan, a state with a strong presence in auto manufacturing, told reporters:

As we transition to electric vehicles, we want to ensure that workers make the transition in their workplaces so that no worker and no community is left behind.

UAW President Shawn Fine welcomed the announcement Thursday. According to him, the policy makes it clear to employers that the transition to electric vehicles must include strong union partnerships with high standards of pay and security earned by generations of union members.

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Recently, tensions have escalated, with union members voting decisively against the possibility of a strike by Detroit’s top automakers if negotiations over wages and pension plans are not reached before the current contract expires on Sept. 14.

Stellandis, the automotive conglomerate, has drawn attention to its plans to close the Jeep factory in Belvidere, Illinois. However, the announcement was met with opposition, and discussions continue about the factory’s future, possibly with government help.

In response to questions about the potential of subsidies to save factories from closing, Granholm suggested that communities with established plants were well positioned to benefit from these financial opportunities.

Although there are no specific manpower requirements for companies seeking this funding, projects with good working conditions may have an advantage in receiving funding, the Department of Energy representative stressed.

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