US Vice President Kamala Harris announced during a speech in Detroit on Monday over $100 million in fresh funding to boost domestic electric vehicle parts manufacturing.
White House offers support to small- & medium-size EV parts maker
According to the press release, the funding announcement is part of the Vice President’s Economic Opportunity Tour.
This new funding will aid small- and medium-size internal combustion engine-powered vehicle parts manufacturers prepare to shift to electric vehicle components production. They can either expand or retool their existing facilities for electric vehicle parts.
The move is crucial for the US’ efforts to build its own domestic supply chain amid the transition to electric vehicles.
Funding
The Department of Energy’s Automotive Conversion Grants Program will provide 50% of the funds to encourage suppliers to produce parts for electric vehicles rather than for internal combustion engine-powered vehicles.
“This funding will maintain the Domestic Conversion Grant’s same focus on supporting retooling to keep good, good-paying and union jobs in the same communities as automakers and auto suppliers transition to electric vehicle manufacturing here in America. “
White House
The other $50 million will come from the DOE’s Implementation Grants Program, which will aid suppliers “kickstart manufacturing diversification and conversion projects.”
In addition, the Small Business Administration will catalyze millions of dollars in private capital through its Small Business Investment Company program to support auto parts makers “grow and diversify.” It also aims to launch a new Working Capital Pilot Program under its lending program to offer lines of credit. It will also provide business counseling to interested suppliers.
These programs are under the Inflation Reduction Act and the Bipartisan Infrastructure Law.
Notably, these fresh fundings follow the IRA’s $55.1 billion investment in domestic battery manufacturing and $16.1 billion in electric vehicle factories.
EV and battery industry investments
According to the White House, private companies have declared over $170 billion in electric vehicle and battery production investments since President Biden took office.
In addition, the automotive industry added over 90,000 new job opportunities.
The US government’s substantial support for the EV uptake plays a crucial role in the industry’s growth. These fresh fundings will undoubtedly aid the Biden administration to achieve its target of having electric vehicles account for at least 50% of new vehicle sales by the end of the decade.
