Auto industry’s switch to EVs gets $12 billion in loans and grants from the US Energy Department

The US Department of Energy said Thursday it plans to fuel the auto industry’s transition to electric vehicles with $12 billion in loans and grants.

Hard on the heels of President Joe Biden’s goal to spur the sale of EVs in the United States, the Energy Department will provide $2 billion in grants and $10 billion in loans to support the conversion of US automaker and supplier facilities into manufacturing centers for hybrid and electric vehicles.

The program aims to build or refurbish factories in communities with existing auto manufacturing facilities and to bolster the domestic EV supply chain.

“Today’s announcements show that President Biden understands that building the cars of the future also necessitates helping the communities challenged by the transition away from the internal combustion engine,” Energy Secretary Jennifer Granholm said in a statement Thursday.

The Energy Department also said it plans to invest a separate $3.5 billion to boost US production of advanced batteries and battery materials to support the country’s transition to electric vehicles and clean energy.

The move comes as Biden tries to win over the powerful United Auto Workers union, which has thus far withheld its endorsement of his reelection bid over concerns about policies that would encourage a transition to electric vehicles.

Source: CNN

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