Electric car: US aims to invest US$ 2 billion for transition – 06/28/2023 – Market

The President of the United States, Joe Biden, announced this Wednesday (28) that he intends to invest US$ 2 billion (R$ 9.7 billion) from last year’s Inflation Reduction Act to accelerate the domestic manufacture of electric vehicles ( EVs) and revive struggling factories.

Accelerating grants and other subsidies to fund the conversion of existing auto plants to build electric vehicles could help the White House quell criticism from automakers and the United Auto Workers (UAW) union over proposed environmental rules designed to help usher in the era EV.

The Conversion Subsidy Program for Domestic EV Production will provide cost-sharing subsidies for the manufacture of efficient hybrid vehicles, plug-in electric hybrids, all-electric vehicles and fuel cell vehicles.

The US Department of Energy’s Department of Vehicle Technologies said the program will prioritize projects that refurbish or retrofit factories that have recently stopped operating or are expected to close soon.

The aim is to preserve existing jobs, including union jobs and wages, and “job opportunities in communities that have fueled our automotive economy for decades,” the department announced.

Ohio-based electric truck maker Lordstown Motors filed for bankruptcy on Tuesday, the latest in a string of startups that went public during the buyout boom. Special Purpose Vehicles (SPACs) in the era of the pandemic. SPACs are publicly traded companies created with the aim of acquiring private companies.

The Biden administration, as part of its goal to decarbonize the economy by 2050, is pushing the US auto industry to accelerate the transition to electric vehicles. The Environmental Protection Agency (EPA) in April proposed rules that could see up to two-thirds of the new vehicle market switching to EVs by 2032.