Biden Administration Announces $2 Billion Investment in American Auto Industry

Written from press release

WASHINGTON – July 11, 2024

The Biden administration is set to unveil a $2 billion initiative to modernize and revitalize America’s auto manufacturing sector, focusing on the transition to electric vehicles (EVs). The Department of Energy, backed by the Inflation Reduction Act, will fund the upgrade of 11 auto manufacturing facilities across eight states, securing 15,000 jobs and creating nearly 3,000 new positions.

Energy Secretary Jennifer Granholm highlighted the significance of this investment in a press call, emphasizing that these funds will help major automakers like GM, Fiat-Chrysler Automotive, and Volvo, as well as suppliers such as American Auto Parts, to retrofit their facilities for the production of EVs and components. The initiative aims to produce over 1 million electrified light-duty vehicles and 40,000 trucks and buses annually, nearly doubling the nation’s current EV output.

“This investment is a hallmark of the Biden administration’s industrial strategy, which is to bring manufacturing and jobs back to America after years of offshoring,” Granholm stated. The selected facilities, boasting a collective 575 years of auto manufacturing experience, will undergo upgrades to make their operations cleaner and more efficient.

Acting Secretary of Labor Julie Su lauded the move as a dual effort to achieve climate goals while fostering good jobs. She stressed the administration’s commitment to ensuring that federal investments lead to the creation of quality union jobs, highlighting the broader economic benefits of such positions. The projected economic impact of these projects is estimated at $3.9 billion.

Lael Brainard, the President’s National Economic Adviser, reiterated the administration’s dedication to revitalizing the auto industry. “The president believes the American auto industry is a vital engine of the U.S. economy,” Brainard said, noting that the current administration has reversed the previous administration’s trend of job losses in the sector by creating 275,000 auto jobs and celebrating 20 new auto facilities.

National Climate Advisor Ali Zaidi underscored the environmental and economic benefits of the initiative, asserting that the transition to clean energy is both an imperative and an opportunity. “Thanks to the president’s investment agenda, we have 15 gigafactories and counting to build those batteries here in the United States,” Zaidi said.

Senior Advisor for International Climate Policy John Podesta praised the collaborative efforts of the administration to ensure that the transition to a clean energy economy benefits all, particularly the communities historically dependent on auto manufacturing.

The investment will be distributed through a competitive merit review process, ensuring that facilities at risk of closure are prioritized. The administration expects these facilities to support a broad range of vehicle types, including light-duty passenger vehicles, trucks, and buses, as well as components for fuel cell and hybrid vehicles.

The funding will be tied to strict performance milestones, with companies required to meet production, workforce, and community benefit targets to unlock additional funds. This structured approach aims to ensure the long-term viability and success of the projects.

The detailed list of the 11 selected facilities will be released later today, with the official announcement and further information expected tomorrow at 5:00 a.m. Eastern.

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