Hitting the accelerator on President Biden’s vision for an all-American electric vehicle revolution, Vice President Kamala Harris unveiled a massive $100 million-plus investment to transform the nation’s auto supply chain and workforce.
“For too long, we saw good manufacturing jobs go overseas. This is an investment in the ingenuity and skills of the American auto worker to reclaim our global leadership,”
Harris declared during a tour stop in Detroit’s manufacturing heartland.
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Retooling the Supply Chain
The largest chunk of funding – $50 million through the Department of Energy – will seed federal-state partnerships helping smaller auto parts manufacturers retool their factories to produce components for EVs and modern battery systems.
An additional $50 million is earmarked for grants of up to $300,000 to implement critical energy efficiency, cybersecurity and modernization upgrades identified through federal industrial assessments.
“We’re bringing 21st century tools and resources directly to the suppliers and communities that have anchored this industry for generations,” said Energy Secretary Jennifer Granholm. “By partnering across the public and private sectors, we can ensure this manufacturing future remains a source of prosperity.”
Financing the EV Transition
However, revamping auto supply lines requires significant upfront capital – a barrier the administration is aiming to clear through new lending options and investment incentives channeled through the Small Business Administration.
The SBA will leverage its Small Business Investment Company program to catalyze millions in private funding targeted at helping suppliers modernize and diversify into the booming EV sector. It is also establishing a Working Capital Pilot Program to provide credit lines and counseling so suppliers can meet new demand.
“We’re catalyzing the capital flows and business guidance this backbone of businesses needs to grow and transform for the clean transportation future,” an SBA official stated.
Training an EV Workforce
Complementing the manufacturing overhaul, new workforce training partnerships and initiatives aim to upskill current autoworkers and develop talent pipelines to meet projected labor demands.
Centerpieces include:
- An Electric Vehicle Workforce Hub in Michigan partnering employers, unions, educators and community groups
- New “Ramp” Fellowships sending expertise to communities receiving major clean energy investments
- A Battery Workforce Initiative developing standardized training for key manufacturing roles
- Sector partnership grants in Indiana and Ohio focused on EV workforce needs
“The workers and businesses that built the U.S. auto industry must remain anchors as we lead the next generation of clean vehicles,” said Labor Secretary Julie Su. “By partnering with unions, employers, and educators, we can upskill today’s workforce and open doors for the next generation.”
Underscoring the complex transition facing many suppliers, the government is also developing a “Small Supplier EV Playbook” offering strategic guidance, market intelligence and details on available federal resources.
An “Auto Supplier Transition Network” of regional technical assistance providers will serve as local lifelines. Leveraging resources like the Manufacturing Extension Partnership and Small Business Development Centers, these regional hubs will offer specialized advisory services, often at no cost.
“We’re bringing operational expertise, market data and federal programs directly to communities so suppliers of all sizes can successfully navigate this path,” Granholm explained.
A Milestone, Not The Finish Line
The multi-faceted actions build on Biden’s economic plan investing in domestic manufacturing and good-paying jobs. Since taking office, over $170 billion has poured into U.S. electric vehicle and battery production – making America the global leader after losing 90,000 auto jobs in the previous administration.
But while celebrating the opening of over 20 new plants, Harris emphasized the efforts are just beginning to
“ensure the auto communities that gave birth to the middle class can continue thriving at the forefront of innovation.”
Critics argue significantly more resources and initiatives may still be needed to fully transition the sprawling auto and energy supply chains. But with billions in incentives and unprecedented focus from the White House, the road ahead for American autoworkers looks charged and ready to take the electric leap.
The White House urged suppliers, workers and advocates to visit www.energy.gov/auto for the latest program information and updates.
Sources: THX News & The White House.
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