The US Department of Energy said on August 31 that it will offer a US$15.5 billion package of funding and loans to help companies retrofit existing automotive manufacturing facilities to produce EVs.
According to the agency's announcement, the package consists of US$2 billion in grants, US$10 billion in loans and US$3.5 billion in investment intent.
The DOE said the Domestic Manufacturing Conversion Grants for EVs program will offer cost-shared grants for domestic production of hybrid, plug-in hybrid, plug-in electric drive and hydrogen fuel cell EVs.
The Domestic Manufacturing Conversion Grants are supported by the Inflation Reduction Act. The US$2 billion will fund the conversion of long-standing facilities to make EVs and components.
According to DOE, another US$10 billion of loans will be available for automotive manufacturing conversion projects. It stated that the grants and loans will be given to projects likely to retain high-quality jobs and a high-wage hourly production workforce.
The Biden administration is also trying to localize a battery supply chain, reducing dependence on China. DOE announced on Thursday a notice of intent to make US$3.5 billion available for expanding domestic manufacturing of batteries for EVs and the US power grid. The funding will also support the production of battery materials and components for EVs and energy storage systems. Many of the parts and materials are currently imported outside the US.
