The Biden administration announced Thursday it would add billions of dollars in funding to help automakers mass-produce electric vehicles (EVs).
As the U.S. electric vehicle market struggles, the U.S. Department of Energy (DOE) is spending $1.7 billion to help manufacturers convert shuttered or struggling manufacturing facilities to produce electric vehicles or EV parts in eight states, including Pennsylvania and Georgia states and other swing states.
The funding complements $12 billion in funding announced by the U.S. Department of Energy in August 2023 to help major manufacturers retrofit electric vehicle production plants, and The agency expects the cash announced Thursday will allow 15,000 union workers to be retained while creating nearly 3,000 jobs.
According to the Ministry of Energy, all selected companies want to work with local unions. Those selected will provide workers with services such as vocational training, child care and retirement benefits.
Fiat Chrysler, a major manufacturer with a market capitalization of about $25 billion, is expected to receive more than $334 million for its plant in Belvedere, Ill., and nearly $250 million for its plant in Kokomo, Ind. funds.
Harley-Davidson set to receive $89 million for electric vehicle conversions At a factory in York, Pennsylvania, Volvo expects to earn around $208 million to boost production of zero-emission trucks Factories across Pennsylvania, Virginia and Maryland.
The government has launched a major effort over the next decade, using strict regulations and billions of taxpayer dollars to force American consumers to buy electric vehicles.
However, major automakers are losing a lot of money on their electric vehicle product linesand recent surveys indicate that many Americans—including those who already own electric vehicles—are not fully convinced of their merits over internal combustion engine models.
In addition, according to an analysis by JD Power in May, the U.S. electric vehicle market is at a “trough moment,” with Axios data showing that used electric vehicle prices have dropped 16.6% from last year.
The DOE said the funding announced Thursday is still subject to negotiations between the government and companies, which are expected to meet certain “commitments to workers and communities.”
This spending is also in line with the Biden administration’s “Justice40” agenda. It argues that at least 40% of the overall benefits of certain environmental spending go to “disadvantaged communities that have been marginalized by underinvestment and overburdened by pollution.”
Read the break from The Daily Caller
