Energy Secretary Jennifer Granholm announced on Thursday that the Biden administration is providing $12 billion in grants and loans for automakers and suppliers to upgrade their plants to build electric and other advanced vehicles.
Former governor of the auto-producing state of Michigan, Granholm, told reporters on the phone: “While we transition to EVs, we want to ensure that workers can transition in place, that there is no worker or community left behind.” The White House may be able to deflect criticism from automakers and the United Car Workers (UAW) union over proposed environmental regulations intended to usher in the EV era by accelerating grants and other subsidies to fund the conversion of existing car plants to create electric vehicles. The UAW has cautioned that a quick transition in areas like Michigan, Ohio, Illinois, and Indiana might jeopardize thousands of jobs. The Detroit Three automakers might face a strike if a wage and pension agreement is not struck before the current four-year contract expires on September 14th, according to a vote last week by UAW members. Shawn Fain, president of the United Auto Workers, applauded the decision on Thursday and said that the policy “makes clear to employers that the EV transition must include strong union partnerships with the high pay and safety standards that generations of UAW members have fought for and won.” In a statement, President Joe Biden said that “building a clean energy economy can and should provide a win-win opportunity for auto companies and unionized workers who have anchored the American economy for decades.” Fain has sworn to prevent Stellantis from closing the Jeep manufacturing plant in Belvidere, Illinois. The automaker has not ruled out the prospect of providing government funding for the factory to acquire a new product. Granholm responded that factories that have been established in close proximity to communities are “prime for taking advantage of these funding opportunities” when asked about the likelihood that the funds may keep the business operating. There won’t be any particular labor standards that businesses must meet in order to receive the financing, but projects with better working conditions will stand a better chance of getting it, an Energy Department representative said on the call. According to Granholm, the administration will also provide $3.5 billion in funding to domestic battery makers. The Inflation Reduction Act, passed by Democrats last year, would provide $2 billion in subsidies for advanced cars, while the Energy Department’s Loans Program Office will provide $10 billion in loans.
