Article Summary –
Grants announced by the Department of Energy will assist auto manufacturing facilities in eight states, including Pennsylvania, in transitioning from fossil fuel-powered vehicles to clean energy vehicles, supported by nearly $2 billion in federal funding and a $177 billion private sector investment. These grants, part of the Inflation Reduction Act signed by President Joe Biden, aim to ensure that the future of the auto industry is “Made in America” by union workers, retaining thousands of jobs and creating new ones. The program faced political division, passing through Congress solely with Democratic votes amidst Republican opposition.
The Department of Energy announced on July 11 that grants have been allocated to revitalize auto manufacturing plants in eight states, including Pennsylvania, to transition from fossil fuels to clean energy vehicles.
“This delivers on my commitment to manufacturing communities and workers left behind by my predecessor and are now making a comeback with my policies, including the conversion grants announced today,” President Joe Biden stated in a statement. “These grants will help ensure the future of the auto industry is made in America by American union workers.
“I’ll never stop fighting for the American auto industry and American autoworkers,” Biden added.
The Energy Department said this federal support complements $177 billion in private sector investment in electric vehicle and battery manufacturing since Biden took office.
Volvo will receive $208 million for its plants in Macungie, Pennsylvania; Dublin, Virginia; and Hagerstown, Maryland. These locations produce Mack and Volvo heavy-duty trucks and will be upgraded to enhance electric vehicle production. The company will retain 7,900 union jobs and create 295 new positions. Volvo will collaborate with the United Auto Workers of America on workforce training and retention.
Funding is also allocated to facilities in Ohio, Michigan, Georgia, Maryland, Illinois, Indiana, and Virginia.
The Domestic Manufacturing Conversion Grants program stems from the Inflation Reduction Act, signed into law in 2022. The act is the largest federal investment in combating climate change in U.S. history, designed to support programs reducing greenhouse gases.
The legislation passed with only Democratic votes, facing unified opposition from Republicans.
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