The US president recently noted that the Bipartisan Infrastructure Law will help companies that make batteries for electric vehicles to build new manufacturing sites.
In the latest move to create more jobs and transition the vehicle industry from fuel dependent to electric models, the Biden administration has ostensibly set aside $2 billion from last year’s Inflation Reduction Act to be used as grants. Reportedly, the administration of Joe Biden wants to help domestic and existing vehicle assembly companies to seamlessly transition to building electric vehicles (EV).
Additionally, the Domestic Manufacturing Conversion Grants for electric vehicles program will provide cost-shared grants to help accelerate the development of efficient hybrid, plug-in electric hybrid, fully electric, and fuel cell vehicles.
Notably, the Department of Energy’s Vehicle Technologies Office noted that the grant program will give more focus to companies that were about to close operations or about to wind down to preserve existing jobs. For instance, Ohio-based Lordstown Motors Corp (NASDAQ: RIDE) recently filed for bankruptcy protection under Chapter 11 following economic challenges and slow adoption of its products. Moreover, the company which was founded in 2018 has seen its stock market drop more than 87 percent YTD to trade around $2.09 on a market cap of about $36.49 billion.
The Biden administration is hitting several targets with one bullet including job creation, decarbonizing the economy, and reviving local manufacturing companies. Moreover, the Environmental Protection Agency has put in place measures to ensure a seamless EV transition by the year 2032.
According to the Biden administration, qualified auto companies will receive between $25 million and $500 million over the next eight years.
Biden Administration Taps on EV Sector for Economic Expansion
Since President Biden was elected to office, he has put significant resources into the electric vehicle industry both directly and indirectly. Earlier this month, the Biden-Harris administration announced more than $192 million in new funding for recycling batteries from consumer products, launching an advanced battery research and development (R&D) consortium, and the continuation of the Lithium-Ion Battery Recycling Prize, which began in 2019.
The Inflation Reduction Act makes the largest investment ever in combating climate change.
It addresses the climate crisis and strengthens our energy security, creating jobs manufacturing solar panels, wind turbines, and electric vehicles in America with American workers.
— Joe Biden (@JoeBiden) August 8, 2022
According to the US Secretary of Energy Jennifer M. Granholm, the country has to continue investing in clean energy production to ensure a secure and sustainable future. Earlier this year, the Biden administration through the Department of Energy (DOE) announced more funding geared towards zero-emission vehicle assembly.
“President Biden’s historic clean energy laws are making it possible for us to get more EVs on the road by expanding charging infrastructure into underserved communities, while reducing range and cost anxiety among drivers who want to go electric,” Granholm noted.
With the country pushing to unveil more EV charging stations, Tesla Inc (NASDAQ: TSLA) welcomed other vehicle companies to begin using its charging stations.
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