Huge support for electric vehicles from the USA

The US Department of Energy announced that it will provide a total of $1.7 billion in funding to automobile and auto parts factories in eight states. This funding will allow the restructuring of factories to produce electric vehicles and their components. That money will come from President Biden’s Inflation Reduction Act and includes subsidies for electric vehicle and battery factories and $7,500 tax credits for consumers who purchase electric vehicles, according to The New York Times and The Washington Post.

One of the 11 recipients of this funding will be a Jeep plant in Belvidere, Illinois, which closed last year. The factory, which will receive $334.8 million from this initiative, will reopen to electric vehicle production and create employment for 1,450 workers. GM will receive $500 million and convert a factory in Lansing, Michigan, to produce electric vehicles instead of gasoline vehicles. Hyundai Mobis’ U.S. subsidiary will receive $32.6 million to reconfigure a factory in Toledo, Ohio, to produce plug-in vehicle components.

Government officials said the fund selected communities disproportionately affected by pollution or lack of investment. It was also stated that employees in all selected companies were represented by unions. These grants have not been finalized, and companies still need to negotiate terms with the Department of Energy. Companies need to commit to retaining their current employees and achieving employment goals. They also need to commit to providing certain benefits, such as child care, retirement, and training to advance their careers.

According to The Times, several factories selected for the initiative are known as “battleground states” for the upcoming presidential election. “This investment will create thousands of good-paying union manufacturing jobs and preserve more by helping auto companies restructure, restart and rehire from Lansing, Michigan, to Fort Valley, Georgia,” Biden said in a statement. “This fulfills my commitment to the manufacturing communities and workers left behind by my predecessor.” he added.

U.S. Energy Secretary Jennifer Granholm stated that the fund would protect 15,000 jobs and create 3,000 new jobs. She also said it would help the United States “compete with other countries that subsidize their auto industries.” The minister did not mention China, but the country is known for subsidizing electric vehicle manufacturers. Earlier this year, the US government quadrupled tariffs on electric vehicles imported from China. The European Union announced that it will impose additional tariffs of up to 38 percent on Chinese-made electric vehicles in order to protect local manufacturers.