President Joe Biden has decided to support the US auto industry with $1.77 billion to help them switch to electric car manufacturing.
Many US auto companies have been forced to close factories or are at risk of closing due to the electric car trend and being too late to change.
The US Department of Energy will now support these companies to keep domestic car manufacturing going and switch to the production of electric cars, according to Reuters.
Earlier this year, a tariff was imposed on Chinese electric cars and batteries in an attempt to stop the Chinese industry from dominating the US. This financial assistance is now the next step to strengthen the domestic industry.
General Motors and Stellantis are the biggest recipients of the aid. GM’s Lansing Grand River plant in Michigan will receive $500 million, and Stellanti’s shuttered Belvidere plant and Indiana Transmission plant in Kokomo, Indiana will receive $585 million to manufacture electric cars and electric car components, respectively.
In total, the support covers eleven factories in eight states, which will increase the capacity to manufacture one million electric cars annually.
Donald Trump has criticized Biden recently on the issue of electric vehicles. Trump is a strong supporter of oil companies and traditional car manufacturers. With Biden now supporting the electric vehicle industry in the US, it is inevitable to provoke a strong reaction from Trump.
