The Biden administration announced plans to invest $12 billion in grants and loans to help the auto industry transition to electric vehicles. The funding will be used to support the conversion of existing auto plants to produce electric vehicles, as well as to boost the domestic production of batteries and battery materials.

The announcement comes as the Biden administration is seeking to accelerate the shift to electric vehicles in the United States. The administration has set a goal of having half of all new cars sold in the United States be electric by 2030.

President Biden said,

“Building a clean energy economy can and should provide a win-win opportunity for auto companies and unionized workers who have anchored the American economy for decades.”

The $12 billion in funding will be made available through the Energy Department’s Loan Program Office and the Advanced Technology Vehicles Manufacturing (ATVM) loan program. The ATVM program was created in 2008 to help automakers develop and produce fuel-efficient vehicles.

Shawn Fain, United Auto Workers President said,

“This investment will create good-paying union jobs and help us win the race to make America the clean energy leader of the 21st century.”

The Biden administration is also proposing to invest $3.5 billion in the production of advanced batteries and battery materials. This funding would be used to support the development of new battery technologies and to build new battery factories in the United States.

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Jennifer Granholm, Secretary of Energy said,

“The transition to electric vehicles is a major step forward in the fight against climate change. This investment will help to make electric vehicles more affordable and accessible for all Americans.”

The announcement was met with praise from environmental groups and labor unions. The Sierra Club called the investment “a major step forward in the fight against climate change.” The United Auto Workers union said the investment would “create good-paying union jobs and help us win the race to make America the clean energy leader of the 21st century.”

The investment is likely to face opposition from some automakers, who have argued that the transition to electric vehicles will be too costly. However, the Biden administration is hoping that the investment will help to create a level playing field for electric vehicles and make them more affordable for consumers.

The announcement is also a sign of the Biden administration’s commitment to addressing climate change. The administration has set a goal of achieving net-zero emissions by 2050, and electric vehicles are seen as a key part of that effort.

The $12 billion in funding is a significant investment in the transition to electric vehicles. It remains to be seen how much of the funding will be used, and how quickly the transition will take place. However, the announcement is a positive step forward for the clean energy economy.