Billion-Dollar Subsidy in the US Aims to Assist Automakers with ‘Electrification’

The US Department of Energy is making up to 12 billion dollars available to automotive manufacturers in the United States. With this subsidy, they will have the opportunity to adapt their factories for the production of electric and hybrid vehicles.

In this way, Washington aims to support communities where employment in the automotive industry plays a significant role. This should enable automakers to retain their workforce.

The announcement from the Department of Energy comes at a time when negotiations are underway between the United Auto Workers union and three major automakers, General Motors, Ford, and Stellantis. In addition to wages, the discussions cover labor conditions for employees involved in manufacturing batteries for electric vehicles.

The US government’s subsidy fund contributes to the administration’s goals. They aim for at least half of all vehicle sales to be electric vehicles by 2030. However, the available funds are not solely for electric vehicle manufacturers. According to the department, builders of hybrid and hydrogen vehicles, for example, can also benefit from this assistance.