US Department of Energy unveils massive funding package for EV transition

The U.S. Department of Energy (DOE) has announced a monumental $15.5 billion funding package as part of President Joe Biden’s Investing in America agenda. This significant investment focuses primarily on transforming existing factories for electric vehicle (EV) production, boosting domestic battery manufacturing, and enhancing U.S. supply chains. The aim is to create good jobs, promote environmental justice, and propel the United States toward its ambitious climate goals.

$2 Billion in Grants and $10 Billion in Loans to Support EV Manufacturing Conversion

The DOE’s new funding opportunity includes $2 billion in grants and up to $10 billion in loans to facilitate the conversion of automotive manufacturing facilities. These projects will prioritize high-wage hourly production workforces, particularly those with collective bargaining agreements. The Domestic Conversion Grant Program will assess projects based on their likelihood of retaining these attributes. Manufacturers can apply through the DOE’s Office of Manufacturing and Energy Supply Chains (MESC) or seek preferable debt financing via the DOE’s Loan Program Office.

$3.5 Billion Earmarked for Domestic Battery Manufacturing and Components

A Notice of Intent has been released by the DOE for an additional $3.5 billion in funding to expand U.S. manufacturing of batteries for electric vehicles and the national grid. This funding will also support the production of battery materials and components that are currently imported, aligning with President Biden’s strategy to strengthen domestic industry and supply chains. These initiatives serve to bolster the nation’s economic security while contributing to its climate objectives.

Preference Given to High-Wage, Unionized Jobs and Projects Supporting Equity

All funded projects must align with the President’s Justice40 Initiative, focusing on diversity, equity, inclusion, and accessibility. Higher scores in the Domestic Conversion Grant Program will be given to projects that maintain or create high-quality, high-wage production jobs. The aim is for every community to benefit from the clean energy transition.

Concept Papers Due by October 2023, Full Applications by December 2023

For those interested in taking advantage of this funding opportunity, concept papers must be submitted by October 2, 2023, and full applications are due by December 7, 2023. The DOE’s new programs are made possible by the Investing in America agenda, which aims to rebuild the nation’s infrastructure and drive over $500 billion in private sector manufacturing and clean energy investments.

Secretary of Energy Jennifer M. Granholm Affirms Administration’s Commitment

U.S. Secretary of Energy Jennifer M. Granholm emphasized that today’s announcements show President Biden’s deep understanding of the challenges posed by the transition away from internal combustion engines. She noted that investing in America’s workforce and manufacturing capabilities is crucial for the nation’s future as a global manufacturing powerhouse.

The announcement reinforces President Biden’s Investing in America agenda, which continues to focus on economic growth from the bottom up, creating good-paying jobs, and building a resilient, clean-energy economy.