Department of Energy announces $12 billion to retrofit auto facilities for electric vehicles

The Department of Energy is allocating more than $15 billion to automakers to support the industry’s transition to electric vehicles — but prioritizing certain funding to projects that pay higher wages for workers and maintain bargaining agreements with unions. This move comes as the United Auto Workers has granted union leaders authorization to call strikes during ongoing contract negotiations.

The DOE, which announced the move on Thursday, said that it would be allocating $2 billion in grants and $10 billion in loans to support automakers and part suppliers to retrofit existing facilities and expand the production of electric vehicles and their components. Preference for funding, however, will be given to projects that “commit to high wages for production workers and maintain collective bargaining agreements,” and projects in “longstanding” auto manufacturing communities.

The agency also announced its intent to disburse $3.5 billion to boost production of batteries and materials intended for the electric vehicle transition. Stemming from the bipartisan infrastructure legislation, this is the second round of funding for battery production.The announcement comes amid a labor battle between the UAW and General Motors, Ford Motor, and Stellantis.

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