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DOE Announces $15.5 Billion Package to Retool Factories for EV Transition

The U.S. Department of Energy recently announced a $15.5 billion package of funding and loans primarily focused on retooling existing factories for the transition to electric vehicles.

The funding includes making available $2 billion in grants and up to $10 billion in loans to support automotive manufacturing conversion projects in communities that currently host these manufacturing facilities.

In the Domestic Conversion Grant Program, higher scores will be given to projects that are likely to retain collective bargaining agreements and/or those that have an existing high-quality, high-wage hourly production workforce, such as applicants that currently pay top quartile wages in their industry, DOE said.

The Domestic Manufacturing Conversion Grants for electrified vehicles program, will provide cost-shared grants for domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles. This program will expand manufacturing of light-, medium-, and heavy-duty electrified vehicles and components and support commercial facilities including those for vehicle assembly, component assembly, and related vehicle part manufacturing. 

Concept papers are due October 2, 2023, and the deadline for full applications is December 7, 2023. Learn more about this funding opportunity

DOE is making up to $10 billion in loan authority available for applications under the Advanced Technology Vehicles Manufacturing Loan Program for automotive manufacturing conversion projects that retain high-quality jobs in communities that currently host manufacturing facilities.

Examples include retaining high wages and benefits, including workplace rights, or commitments such as keeping the existing facility open until a new facility is complete, in the case of facility replacement projects.

For projects that seek financing to convert or directly replace an existing factory that has high-quality jobs, DOE will assess the projected economic impacts of the facility conversion relative to the existing facility, including factors such as contribution to the local economy, employment history, anticipated employment, and duration of its existence. Interested applicants can learn more about how to apply for these projects here

DOE also announced its intent to invest approximately $3.5 billion to boost production of advanced batteries and battery materials “that are critical to rapidly growing clean energy industries of the future, including electric vehicles and energy storage.”

This notice of intent represents the second round of funding for battery materials processing and battery manufacturing grants to support the creation of new, retrofitted, and expanded domestic commercial facilities for battery materials, battery components, and cell manufacturing.

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