Biden administration offers $12 billion as aid for automakers to motivate EV production

In a bid to increase the production of electric and other vehicles in the country, the Biden administration is making available $12 billion in grants and loans for the automakers and suppliers, stated Energy Secretary Jennifer Granholm to reporters on Thursday.

Granholm, who has earlier served as a governor of car manufacturing state Michigan, stated, “While we transition to EVs, we want to ensure that workers can transition in place, that there is no worker, no community left behind.”

The move to speed up the grants and other subsidies for the existing auto plants, shifting towards manufacturing of electric vehicles could help White House blunt criticism from not only automakers but also United Auto Workers (UAW) union over proposed environmental rules aimed to help usher in the EV era.

The UAW has warned that rapid changes could put thousands of jobs at risk in states such as Michigan, Ohio, Indiana, and Illinois.

For the unversed, the members of UAW authorized a strike at Detroit Three automakers if an agreement regarding the wages and pension plans is not reached before the current four-year contract expires on September 14.