The Energy Department announced on Thursday that it had made $2 billion in grants and $10 billion in loans available to auto companies to convert existing factories that build gas-powered cars and trucks into plants that produce hybrid and electric vehicles.
The money, provided under the 2022 Inflation Reduction Act, is aimed at maintaining jobs in communities that have been defined by the auto industry.
It comes as President Biden is seeking the endorsement of the United Auto Workers union, which has expressed concern over recent decisions by carmakers to ramp up electric vehicle manufacturing, which requires fewer workers, and to locate new factories in states without unionized labor.
As part of his climate agenda, Mr. Biden is combining federal investments with an aggressive new regulatory proposal to try to ensure that two-thirds of all new cars sold in the United States are all-electric by 2032, up from about 7 percent today.
Transportation is responsible for about one-third of the greenhouse gases generated by the United States, pollution that is dangerously heating the planet.
Persons:
Biden, Biden’s
Organizations:
Energy Department, United Auto Workers union, Transportation
Locations:
United States