In a groundbreaking announcement, the White House revealed plans to allocate $1.7 billion towards transforming shuttered or imperiled auto manufacturing and assembly plants into facilities dedicated to producing electric and hybrid vehicles.
This initiative comes at a crucial time, as the growth in new electric vehicle sales has seen a slowdown. The Biden administration aims to ensure that US electric vehicle manufacturers remain competitive in the face of a rapidly expanding Chinese industry. Earlier this year, President Joe Biden quadrupled tariffs on electric vehicles from China as part of this effort.
Energy Secretary Jennifer Granholm emphasized the significance of this move, stating, “This announcement is a hallmark of the Biden administration’s industrial strategy, which is a strategy to bring manufacturing jobs back to America after years of offshoring.”
The Department of Energy has identified plants in eight states, including key battlegrounds like Michigan and Pennsylvania, to receive funding under the landmark Inflation Reduction Act.
President Biden expressed optimism about the impact of this investment, declaring, “Building a clean energy economy can and should be a win-win for union autoworkers and automakers.” The funding is expected to create thousands of well-paying union manufacturing jobs and prevent the loss of thousands more across various states.
The administration estimates that the projects will generate 2,900 new jobs and preserve 15,000 existing jobs. Major automakers such as GM and Volvo, as well as suppliers like American Auto Parts, are among the recipients of the funding.
According to a senior administration official, the selected plants will cover a range of operations from vehicle component manufacturing to full vehicle assembly.
Amid a slowdown in the growth rate of electric vehicle sales and the industry’s struggle to reach mass market consumers, some automakers are turning their attention to the hybrid space. Both GM and Ford have announced plans to increase their production of hybrid vehicles.
Notably, the facilities identified in Thursday’s announcement will focus on the production of both electric and hybrid vehicles, highlighting the Biden administration’s commitment to advancing a cleaner and more sustainable transportation future.
