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Biden administration awards $1.7 billion to auto factories to build electric vehicles

Biden administration awards .7 billion to auto factories to build electric vehicles
Biden administration awards .7 billion to auto factories to build electric vehicles

The U.S. Department of Energy has announced that it is providing a total of $1.7 billion in grants to auto and auto parts factories in eight states to help them convert to produce electric vehicles and their components. The New York Times And The Washington PostThe money will come from President Biden’s inflation-fighting bill, which includes subsidies for electric vehicle and battery factories and $7,500 in tax credits that consumers can receive when purchasing an electric vehicle.

One of the 11 recipients is a Jeep factory in Belvidere, Illinois, which closed last year. The $334.8 million it will receive from the initiative will allow it to reopen to produce electric vehicles and restore 1,450 jobs. GM, which will receive $500 million, will convert a plant in Lansing, Michigan, to make electric cars instead of gasoline cars. The U.S. subsidiary of Korean auto parts maker Hyundai Mobis will also receive $32.6 million to convert a plant in Toledo, Ohio, to produce plug-in vehicle components.

Government officials said they chose communities that are disproportionately affected by pollution or lack of investment. In addition, employees at all selected companies will be represented by unions. The grants are not set in stone – the companies still have to negotiate terms with the Energy Department. They must commit to retaining their current employees despite the switch to electric vehicles, and they must meet employment targets. The companies must also promise to provide their employees with certain benefits, such as childcare, pensions and training to advance their careers.

As The times As Biden notes, several factories selected for the initiative are located in the “swing states” of the upcoming presidential election. “This investment will create thousands of good-paying, union manufacturing jobs and preserve even more – from Lansing, Michigan, to Fort Valley, Georgia – by helping auto companies retool, restart, and rehire in the same factories and communities,” Biden said in a statement. “In doing so, I am fulfilling my promise to never give up on the manufacturing communities and workers my predecessor failed.”

Jennifer Granholm, the U.S. Secretary of Energy, believes the fund will preserve 15,000 jobs and create 3,000 new ones. Granholm also said it will help the U.S. “compete with other countries that subsidize their auto industries.” Although the secretary did not specifically mention China, the country is known for subsidizing its electric car manufacturers. Earlier this year, the U.S. government quadrupled import tariffs on Chinese electric cars, while the European Union announced it would impose additional tariffs of up to 38 percent on electric cars made in China to protect local manufacturers.

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