Department of Energy announces $12 billion to retrofit auto facilities for electric vehicles
Nancy Vu
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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.
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“You can’t just have a clean energy transition,” Secretary of Energy Jennifer Granholm said during a press call with reporters. “It also needs to be just.”
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.
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The announcement comes amid a labor battle between the UAW and General Motors, Ford Motor, and Stellantis. Members of the union overwhelmingly granted union leaders authorization to call strikes during contract negotiations if new contracts fail to materialize by Sept. 14. A Big Three strike would be the biggest auto strike since 2019, when more than 48,000 UAW workers at General Motors set up picket lines.