EV: DOE unveils $15.5B funding and loan package

The initiative is part of President Biden's 'Investing in America' agenda

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The U.S. Department of Energy (DOE) unveiled on August 31 a $15.5 billion funding and loan package as part of President Biden's “Investing in America” agenda.

Here a few key points:

• The primary focus is on transforming existing factories for the production of electric vehicles (EVs) to create jobs and facilitate a “just” transition to EVs.

• This includes $2 billion in grants and up to $10 billion in loans for automotive manufacturing conversion projects that retain “high-quality jobs” in communities with existing manufacturing facilities. Projects that maintain collective bargaining agreements and high-wage hourly production workforces will be prioritized.

• Additionally, the DOE has announced a Notice of Intent to allocate $3.5 billion in funding to expand domestic battery manufacturing for EVs and the grid, reducing reliance on imports.

The timing of this announcement is key (Labour Day weekend). This was a good opportunity for the White House to go out with a bang (with a clever “equity” tone on top of that).