On Thursday, the Energy Department unveiled a $1.7 billion plan to retool 11 car facilities to make electric vehicles (EVs) and related parts. The funding aims to support facilities that have closed or may close without government assistance.
This is part of the Biden administration's climate-related investment acceleration before November's election. The administration faces criticism for its sluggish progress in green loans. If elected again, former President Donald Trump plans to cut renewable energy and EV expenditures, per The Washington Post.
The Inflation Reduction Act of 2022 gives EV customers $7,500 in tax rebates. At an April meeting with oil sector funders, Trump rejected EVs' efficacy and pledged to rescind Biden's initiatives.
The 11 funded factories are in eight states, including the 2024 election battlegrounds in Georgia, Michigan, Ohio, and Pennsylvania. Unlike many Southern EV factories that face anti-union labor regulations, all facilities adhere to unionization.
Biden has emphasized his support for unions, a key Democratic base, amid party pressure to drop away from the reelection fight. On Wednesday, he met with the AFL-CIO executive council, the largest U.S. trade union federation.
President Biden noted that establishing a clean energy economy "should benefit union autoworkers and automakers." He stated that the investment would create thousands of union, high-paying manufacturing jobs and allow automakers to retool and rehire in the same facilities and towns.
To receive funding, negotiations with firms must succeed. If granted, it may generate 2,900 jobs and save over 15,000 union jobs, according to the Energy Department.
EV Manufacturing Boost to Benefit US Workers
Energy Secretary Jennifer Granholm called the news a vital part of the Biden administration's plan to return manufacturing jobs home after years of outsourcing. This funding comes amid concerns about China's EV supply chain dominance. In May, Biden raised Chinese EV tariffs to 100% to safeguard home production.
The news coincides with a change in the US EV market. Cox Automotive reports that Tesla's market share dipped below 50% in the second quarter, despite record EV sales.
Biden Pushing Tech Programs Before Term Ends
Without federal backing, many of these facilities might close, said Guidehouse Insights EV specialist Sam Abuelsamid. He highlighted that EV adoption reduces the requirement for internal combustion engine car production capacity.
Former US President Donald Trump called Biden's EV support a "radical plan" and government overreach. Republican petroleum friends have spent millions on ads alleging Biden's EV tax credit will jeopardize Americans' freedom.
In May, the Biden administration cashed $285 million in CHIPS Act fund to build semiconductor manufacturing digital twins, as reported by TechTimes.
The Department of Commerce is establishing a CHIPS Manufacturing USA institute to exploit digital twin technology in the semiconductor sector. Digital twins simulate tangible objects and systems, such as semiconductor manufacturing processes.
This is Commerce's first Manufacturing USA institute under Biden. Digital twin technology is used to improve semiconductor research and development.
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