- The U.S. government is investing over 100 million dollars to help auto suppliers shift to electric vehicle production, boosting the EV industry’s momentum.
- The Department of Energy’s 50 million dollar grants, plus 50 million from the Bipartisan Infrastructure Law, aim to enhance energy efficiency, cybersecurity, and reduce emissions in auto manufacturing.
- These initiatives strengthen U.S. supply chains, safeguard jobs, and set the stage for a cleaner, more competitive automotive future, as acknowledged by industry leaders like MEMA.
U.S. Supercharges Auto Industry with $100M EV Boost
The U.S. government is dropping over 100 million dollars in subsidies to boost small and medium-sized auto suppliers. The goal? To help them pivot to making parts for EVs. It’s all about supercharging the EV game and giving the industry’s green shift a serious kick.
The Department of Energy is setting aside 50 million dollars in grants to help small and medium-sized suppliers transition from making combustion vehicle parts to EV components. They’re also throwing in another 50 million from the Bipartisan Infrastructure Law to help automotive suppliers boost energy efficiency, cybersecurity, productivity, and cut greenhouse gas emissions.
During a visit to Detroit, Vice President Kamala Harris, said;
“The strength of America’s economy is based on the strength of America’s supply chains. We all learned that in the pandemic if it weren’t clear before.“
The investment aims to strengthen U.S. supply chains and protect American jobs.
In Detroit, Harris also unveiled a new initiative where the Department of Energy teams up with the Small Business Administration. The plan is to mix government-backed loans with private capital to make credit cheaper for small and medium-sized auto parts manufacturers. Plus, there’s a pilot program offering loans to auto parts makers and dealers. This will help companies that get Energy Department grants train, educate, and hire local workers. It’s all about boosting the auto industry while supporting local jobs.
The Vehicle Suppliers Association MEMA gave a thumbs up to the US government’s recent announcement, stating that it will boost the domestic automotive industry and keep it competitive in the clean vehicle market.
Bill Long, President and CEO of MEMA, said;
“This significant investment and comprehensive set of actions announced by Vice President Harris will undoubtedly have a meaningful impact for the sector. This is a clear step in the right direction for our members, empowering them to thrive in the evolving vehicle ecosystem.”
These moves signal a shift in the auto industry’s future, focusing on green energy and robust supply chains. With 100 million dollars in play, the U.S. government is fuelling innovation and protecting jobs, laying the groundwork for a sustainable automotive landscape. It’s a push toward a cleaner, more competitive industry, with a focus on EVs and energy efficiency.
