U.S. Energy Secretary Jennifer Granholm said on Aug. 31 that the government will provide $12 billion in grants and loans to automakers and suppliers to support automakers in transforming their plants to produce electric, hybrid and hydrogen fuel cell electric vehicles.。

The $12 billion, consisting of $2 billion in grants and $10 billion in loans, will directly support vehicle manufacturing projects for light, medium and heavy electric vehicles.。In addition, the government will provide $3.5 billion to domestic battery manufacturers.。The US $3.5 billion will be used to expand the construction of domestic electric vehicle batteries and national charging equipment, as well as battery materials and parts imported from other countries。

Over the past few years, several automakers and battery manufacturers have planned to build battery manufacturing facilities in the United States.。Due to supply chain disruptions caused by previous outbreaks, it has become difficult for manufacturers to obtain key battery materials (most of which are produced in China), which in turn has affected project schedules.。To reduce the associated risks and costs, a wave of local production began to emerge.。

Although the U.S. government is actively promoting the electrification of cars, the U.S. domestic auto unions have been unhappy with the impact of the electrification process on workers (e.g., pay cuts, layoffs, etc.)。

The most direct manifestation of this dissatisfaction is the strike.。The United Auto Workers (UAW) had previously offered to authorize a strike by Detroit's Big Three automakers if no agreement on wage and pension plans is reached before the contract expires on Sept. 14.。Last week, the proposal was overwhelmingly approved by UAW members.。

In addition, as part of the U.S. push to electrify cars, the government is proposing new environmental regulations.。But the rule has been repeatedly criticized by unions as well as automakers.。

The UAW warned that rapid change could put thousands of jobs at risk in states including Michigan, Ohio, Illinois and Indiana.。It is understood that these states have a lot of car production base。

Speeding up government grants and other subsidies to fund the transformation of existing car factories into electric vehicles could help quell such criticism.。

Granholm said: "As we move to electric vehicles, we want to ensure that workers can make the transition in place and that no workers, no communities are left behind.。Asked if the grant would allow the plant to continue operating, Granholm said the plants built around the community "are the best option to take advantage of these financing opportunities."。

On Thursday, UAW President Shawn Fain welcomed the government's funding support, saying the policy "makes it clear to employers that the electric vehicle transformation must include strong union partnerships and the high salaries and safety standards that generations of UAW members have fought for and won."。"

Fein has said he wants to save a Jeep factory in Belvedale, Illinois, which Strantis is preparing to close。Now, the automaker's plant may be re-producing new products with government assistance。

Manufacturers will be able to apply for grants through the relevant Department of Energy office or apply for better debt financing terms.。The government will give priority to companies that have set up factories in communities with experience in car manufacturing, as well as business projects that promise to pay workers high wages and maintain collective bargaining agreements.。Energy Department officials said there would be no specific labor requirements for companies to get funding, but that projects with better labor conditions would have a greater chance of getting funding.。

Building a clean energy economy can and should provide a win-win opportunity for the auto companies and unionized workers who have underpinned the U.S. economy for decades. "。"