WASHINGTON/DETROIT : President Joe Biden's administration on Wednesday said it intends to invest $2 billion from last year's Inflation Reduction Act to accelerate domestic manufacturing of electric vehicles and resuscitate plants that are struggling.
The Domestic Manufacturing Conversion Grants for EVs program will provide cost-shared grants for making efficient hybrid, plug-in electric hybrid, fully electric, and fuel cell vehicles. The goal is to preserve existing jobs, including union jobs and wages, and"work opportunities in communities that have been powering our automotive economy for decades," it said.
The Biden administration, as part of its goal of decarbonizing the economy by 2050, is pushing the U.S. auto industry to accelerate a transition to EVs. The Environmental Protection Agency has proposed rules that could result in as much as two-thirds of the new vehicle market shifting to EVs by 2032.