Vice President Kamala Harris announced $100 million in federal grants for automotive suppliers, aiming to accelerate the transition to electric vehicles. Her trip to Michigan, a crucial state for the 2024 presidential race and auto industry, is scheduled to take place before this announcement. To provide further information on the investment, Harris will meet with Governor Gretchen Whitmer and Secretary of Energy Jennifer Granholm while she is travelling.
The Inflation Reduction Act and the Bipartisan Infrastructure Law are providing financing for programmes run by the Department of Energy that will assist small and medium-sized automotive suppliers. The Automotive Conversion Grant programme will use half of the money to assist businesses in converting their current factories to accommodate the production of electric vehicles.
The remaining $50 million will be used to fund cybersecurity, energy efficiency, and greenhouse gas emission reductions at sites under the Industrial Assessments Centre Implementation Grants.
With extra backing from the Small Business Administration, these expenditures are in line with the Biden Administration’s push for electrification. Despite past appeals from the auto sector for a slower pace, the action demonstrates the government’s commitment to the energy transition and supports the auto industry’s phase-out of internal combustion engine vehicles.
