Biden Administration Unveils $2 Billion Investment to Revitalize American Auto Manufacturing

In a sweeping initiative aimed at revitalizing America's auto manufacturing sector, President Biden's administration has announced a transformative $2 billion investment to modernize historical manufacturing facilities for the production of electric vehicles (EVs) and components.

The announcement, made by Secretary of Energy Jennifer Granholm and Acting Labor Secretary Julie Su, underscores the administration's commitment to merging economic revitalization with sustainable industrial practices.

Secretary Granholm articulated the administration's vision, stating, "President Biden is determined to ensure that America's auto communities, which shaped the cars of the 20th century, lead in building the cars of the 21st century."

She expressed excitement over the Department of Energy's allocation of funds, sourced from the president’s Inflation Reduction Act, which will bolster 11 facilities across eight states. This move is expected to preserve 15,000 jobs and generate nearly 3,000 new positions, predominantly in unionized roles.

"This investment is a hallmark of our industrial strategy to reinvigorate American manufacturing after years of outsourcing," Granholm affirmed.

Reflecting on her experience as Michigan's governor during the Great Recession, she stressed the necessity of federal partnership to modernize the auto industry and compete globally.

The initiative targets major automakers like GM, Fiat-Chrysler Automotive, Volvo, and suppliers such as American Auto Parts. Together, these industry leaders boast over 575 years of auto manufacturing experience, positioning them to spearhead the industry's transformation.

Federal funding will facilitate facility retrofits, including the installation of advanced equipment to enhance operational efficiency and environmental sustainability. Granholm highlighted the projected outcomes, noting that the initiative aims to ramp up EV production significantly, projecting annual outputs of over 1 million electrified light-duty vehicles and 40,000 electrified trucks and buses.

In alignment with the administration's commitment to worker welfare, all funded facilities are unionized, with commitments to extensive worker training.

"We're not just saving jobs; we're empowering communities to shape the future of American manufacturing," Granholm emphasized.

Acting Labor Secretary Su echoed Granholm's sentiments, emphasizing the dual achievement of environmental goals and job creation. "President Biden's agenda prioritizes building resilient communities and fostering industries that create good-paying jobs," Su remarked. The initiative is estimated to generate $3.9 billion in economic value while addressing historical economic disparities.

Lael Brainard, National Economic Adviser, underscored the significance of the investment in positioning the American auto industry for global competitiveness.

"This marks a pivotal moment in securing America’s role in auto manufacturing," Brainard stated.

She highlighted the administration's success in creating 275,000 auto jobs and attracting substantial private-sector investments in EV and battery supply chains.

Ali Zaidi, National Climate Advisor, emphasized the strategic importance of the initiative in combating climate change while bolstering economic growth.

"We're not just leading in clean energy manufacturing; we're setting the pace globally," Zaidi asserted.

He praised the administration's efforts to foster innovation across the entire EV supply chain, from production to recycling.

In closing, Zaidi reaffirmed the administration's commitment to leveraging American ingenuity and innovation to tackle global challenges.

"The U.S. auto industry is a testament to what’s possible when we invest in our workers and our future," he concluded.

Source: The White House, July 11, 2024