Biden administration awards car factories $1.7 billion so they can build EVs
Summary
The US Energy Department has revealed that its awarding car and auto parts factories in eight states a total of $1.7 billion in funding, so that they can be retooled to build electric vehicles and their components. According to The New York Times and The Washington Post, the money will come from President Bidens Inflation Reduction Act, which provides subsidies to EV and battery plants, as well as the $7,500 tax credits consumers can get if they buy an electric vehicle.One of the 11 recipients is a Jeep factory in Belvidere, Illinois that closed last year. The US subsidiary of Korean auto parts maker Hyundai Mobis will also get $32.6 million to refit a plant in Toledo, Ohio for the production of plug-in vehicle components.Government officials said they chose communities that are disproportionately affected by pollution or lack of investment. The companies also have to promise to provide their workers with certain benefits, such as child care, pensions and training to further their careers.As The Times notes, several factories selected for the initiative are located in "battleground states" for the upcoming presidential elections. "This investment will create thousands of good-paying, union manufacturing jobs and retain even more from Lansing, Michigan to Fort Valley, Georgia by helping auto companies retool, reboot and rehire in the same factories and communities," Biden said in a statement.