U.S. to Invest $15.5 Billion More in Clean Energy Infrastructure to Support Transition to Electric Vehicles

On Aug. 31, just in time to usher in the Labor Day holiday weekend, the Biden Administration announced a new $15.5 billion investment to “support a strong and just transition to electric vehicles, retooling existing plants, and rehiring existing workers.”

These investments are part of the administration’s Investing in America agenda and are being made in furtherance of an August 2021 executive order setting a target that half of all new vehicle sales by 2030 will be zero-emissions vehicles, and that net-zero electricity will be achieved by 2035 and a net-zero economy by 2050. 

This funding will build on America’s electric vehicle manufacturing boom that has been fueled by the $7.5 billion provided by the Bipartisan Infrastructure Law (BIL) to deploy a national network of 500,000 electric vehicle chargers; more than $7 billion to ensure domestic manufacturers have the critical minerals and other components necessary to make electric vehicle batteries; and $10 billion for clean transit and school buses.

This investment of an additional $15.5 billion in clean energy infrastructure comes on the heels of the launch of three competitions for $27 billion in Greenhouse Gas Reduction Fund grants, and the course correction and doubling down on the U.S. $8 billion investment in clean hydrogen, both of which were announced by the administration this past June.