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DOE Invests $2 Billion to Boost US EV ManufacturingDOE Invests $2 Billion to Boost US EV Manufacturing

The U.S. Department of Energy (DOE) invests in converting 11 US auto facilities for EV production, creating thousands of union jobs and revitalizing manufacturing communities.

Maria Guerra, Senior Editor-Battery Technology

July 15, 2024

3 Min Read
American EV manufacturing.
Car batteries being attached to electric vehicles on an assembly line.SweetBunFactory/iStock / Getty Images Plus

The Biden-Harris Administration has announced a significant investment of nearly $2 billion to support the American auto industry’s transition to electric vehicles (EVs). This funding, sourced from President Biden’s Investing in America agenda, aims to retrofit 11 existing auto manufacturing facilities across eight states, including Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia. This initiative aims to revitalize manufacturing communities and support American auto workers, ensuring that the auto industry's future remains firmly established in the US.

Revitalizing American manufacturing

The $1.7 billion investment will be directed toward converting shuttered or at-risk auto manufacturing and assembly facilities to produce EVs and their components. This move is set to create and retain thousands of well-paying union jobs, fostering economic growth in communities that have long been the backbone of America’s automotive industry. The funding will cover a broad range of the automotive supply chain, including parts for electric motorcycles, school buses, hybrid powertrains, heavy-duty commercial truck batteries, and electric SUVs.

 “Even as our competitors invest heavily in electric vehicles, these grants ensure that our automotive industry stays competitive—and does it in the communities and with the workforce that have supported the auto industry for generations,” stated U.S. Secretary of Energy Jennifer M. Granholm.  Watch a video about the announcement by Granholm here.

Related:Battery Manufacturing Keeps Growing in the US

This initiative is part of a broader strategy to bolster domestic manufacturing and ensure the US remains a global leader in the auto industry. It complements the $177 billion private sector investments in EV and battery manufacturing spurred by the President’s Investing in America agenda. By focusing on the domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles, this program aims to expand manufacturing capabilities across light-, medium-, and heavy-duty electrified vehicles and their components.

Promoting economic growth and job creation

Moreover, the announcement aligns with President Biden’s Justice40 Initiative, which aims to direct 40 percent of the overall benefits of federal investments in climate, clean energy, and clean transportation to disadvantaged communities. The selected projects will create high-quality jobs in these communities, ensuring that the economic and environmental benefits of the transition to electric vehicles are widely shared. The projects will also provide comprehensive support for workers, including job and technical training, childcare, retirement benefits, and transportation benefits, in collaboration with local unions.

Related:How EV Manufacturers Can Navigate Supply Chain Complexity

John Podesta, Senior Advisor to the President for International Climate Policy, stated, “Today’s awards from the Department of Energy help bring that vision to life by investing in the future of the auto industry, creating thousands of good-paying union jobs, and tackling the existential threat of climate change by cutting pollution from the transportation sector.” 

The funding for these projects will be administered by the DOE’s Office of Manufacturing and Energy Supply Chains (MESC), which focuses on catalyzing investments in America’s energy future. The initiative represents a crucial step towards re-shoring, skilling, and scaling US manufacturing capabilities across energy supply chains, reinforcing the country's leadership in clean energy and sustainable transportation.

The nearly $2 billion investment by the Biden-Harris Administration is a pivotal move toward securing the future of the American auto industry. By supporting the transition to EVs and strengthening the domestic supply chain, this initiative fosters economic growth and job creation and positions the US as a leader in the global shift towards sustainable and clean transportation.

About the Author

Maria Guerra

Senior Editor-Battery Technology, Informa Markets Engineering

Battery Technology Senior Editor Maria L. Guerra is an electrical engineer with a background in Oil & Gas consulting and experience as a Power/Analog Editor for Electronic Design.  Maria graduated from NYU Tandon School of Engineering with a Master of Science in Electrical Engineering (MSEE). She combines her technical expertise with her knack for writing. 

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