The U.S. Department of Energy announced on Thursday from the White House a $1.7 billion investment to retool 11 auto factories so they can produce electric vehicles and their components, with a particular focus on facilities that have closed or could close without federal aid.

The funding is a sign of how the Biden administration is racing to distribute “green money” ahead of the November elections, even as it faces criticism for not advancing faster on green loans. Analysts from the Washington Post point out that if former President Donald Trump wins a second term, he could try to eliminate billions of dollars in federal spending intended to accelerate the U.S.'s transition to clean energy and electric vehicles.

Much of this money comes from President Biden’s climate law established in 2022, the Inflation Reduction Act, which also offers tax credits of up to $7,500 for consumers to buy electric vehicles. Trump has falsely claimed that electric vehicles do not work and promised to dismantle Biden's electric vehicle policies during a meeting with oil industry donors in April.

The 11 factories that will benefit are spread across eight states, including battleground states for the 2024 elections such as Georgia, Michigan, Ohio, and Pennsylvania. All of these facilities are unionized, unlike many electric vehicle plants in the southern U.S., which are less union-friendly or lack unions altogether, such as Tesla.

“Building a clean energy economy can and must be beneficial for union workers and automakers,” Biden said in a statement on Thursday. “This investment will create thousands of well-paying union jobs in the automotive industry and retain even more, from Lansing, Michigan to Fort Valley, Georgia, by helping automakers retool, restart, and rehire in the same factories and communities.”

The announced funding is not final and is contingent on successful negotiations with the companies. If granted, it could create more than 2,900 new jobs and save more than 15,000 union jobs at risk of being eliminated, the Department of Energy said. “This announcement is a hallmark of the Biden administration's industrial strategy, which is a strategy to bring manufacturing jobs back to the U.S. after years of outsourcing,” said Energy Secretary Jennifer Granholm to U.S. media.

The funding comes amid growing concern in Washington about China’s dominance in global electric vehicle supply chains and their components. In an effort to prevent a flood of low-cost Chinese electric vehicles from harming domestic manufacturing, Biden quadrupled tariffs on Chinese electric vehicles to 100 percent in May.

The announcement also comes as major automakers are reducing Tesla’s market share in the U.S. electric vehicle market. For the first time, Tesla's market share fell below 50 percent in the second quarter of this year, even as overall electric vehicle sales set a record, according to estimates published on Tuesday by research firm Cox Automotive.

The majority of the funding announced by Biden, $500 million, will help General Motors convert its Lansing, Michigan plant from producing internal combustion engine vehicles to electric vehicles. The Department of Energy said the investment is expected to help the plant retain more than 650 jobs and create 50 new ones.

Another $89 million will help Harley-Davidson retool its York, Pennsylvania factory to produce electric motorcycles. And $32.6 million will go to American Autoparts Inc., a subsidiary of Hyundai Mobis, to manufacture plug-in hybrid electric cars and trucks in Toledo.

John D. Podesta, the president’s senior advisor for international climate policy, said part of the money from the Inflation Reduction Act is reserved for future years. But he noted that about 92 percent of the major grant programs have been launched and nearly 60 percent of the grants have been awarded.

The climate law authorized the Loan Programs Office to lend an additional $200 billion to next-generation energy projects, including solar parks, hydrogen plants, and lithium mines. So far, the office has approved just over $27 billion, with about $215.7 billion left to lend.

Source: https://www.clusterindustrial.com.mx/noticia/7839/biden-anuncia-1-700-mdd-para-impulsar-produccion-de-vehiculos-electricos-en-ee-uu