Biden pledges $15.5B to enhance battery and EV production | GVS

Title: United States Department of Energy Allocates $15.5 Billion to Accelerate Electric Vehicle Transition


The United States Department of Energy (DOE) has recently announced a substantial commitment of $15.5 billion to support the transition to electric vehicles (EVs). This investment, a part of President Joe Biden’s Investing in America agenda, aims to bolster the domestic manufacturing of EVs and batteries while creating high-paying manufacturing jobs across the country. The funding will be primarily directed towards automakers and suppliers to facilitate the retooling of their plants for the production of electric, hybrid, and hydrogen fuel cell vehicles.

Supporting Automotive Manufacturing Conversion Projects

Out of the total funding, $12 billion will be allocated to automotive manufacturing conversion projects for light-, medium-, and heavy-duty EVs. This amount will be distributed through a combination of $2 billion in grants and $10 billion in loans. The objective is to encourage automakers and suppliers to transition their production capabilities towards sustainable transportation solutions. By providing financial support, the DOE aims to accelerate the adoption of EVs and reduce the carbon footprint of the transportation sector.

Expanding Domestic Battery Manufacturing

The remaining $3.5 billion will be dedicated to expanding domestic battery manufacturing capabilities. This investment will focus on enhancing the production of batteries for EVs and strengthening the nation’s grid infrastructure. Additionally, the funding will support the development of battery materials and components that have traditionally been imported from other countries. By bolstering domestic battery manufacturing, the United States aims to reduce its reliance on foreign imports and establish a robust supply chain for EVs.

Onshoring Battery Manufacturing Facilities

In recent years, several automakers and battery manufacturers have expressed plans to establish battery manufacturing facilities within the United States. The COVID-19 pandemic disrupted global supply chains, highlighting the need for localized production of critical battery materials. As a result, companies have sought to onshore battery manufacturing operations to ensure a stable and secure supply of components. The passage of the Inflation Reduction Act in August 2022 further incentivized domestic manufacturing efforts, providing manufacturers with additional support. However, the Treasury is yet to provide guidance on many of the bill’s initiatives.

Boosting Manufacturing Jobs in Conservative States

The federal investments into domestic EV and battery manufacturing align with the Biden administration’s commitment to creating high-paying manufacturing jobs for Americans. Notably, this initiative seeks to benefit conservative states such as Georgia, North Carolina, and Tennessee. By bringing manufacturing operations to these regions, the administration aims to stimulate economic growth and provide employment opportunities in areas historically associated with automotive manufacturing.

Application Process and Preference Criteria

Manufacturers interested in accessing the funding can apply through the DOE’s Office of Manufacturing and Energy Supply Chains or the Loan Program Office. To ensure equitable distribution, preference will be given to companies with plants located in communities with a history of automotive manufacturing. Furthermore, projects that commit to paying high wages for production workers and maintaining collective bargaining agreements will receive preferential consideration. This approach aims to support workers’ rights and promote fair labor practices within the industry.


The United States Department of Energy’s commitment of $15.5 billion towards the transition to electric vehicles marks a significant step in advancing sustainable transportation solutions. By supporting automakers and suppliers in retooling their plants for EV production, as well as expanding domestic battery manufacturing capabilities, the DOE aims to accelerate the adoption of electric vehicles while reducing reliance on foreign imports. This investment not only aligns with President Biden’s agenda but also seeks to create high-paying manufacturing jobs across the country, particularly in conservative states. With this substantial funding, the United States is poised to lead the global shift towards a cleaner and more sustainable transportation future.