$2.4 Billion for Electric Vehicles Announced by Obama (UPDATED)

obama hybrid car photo

photo: Lawrence Jackson/White House

Yesterday at the Edison Electric Vehicle Technical Center President Obama announced the availability of $2.4 billion in funding for development of plug-in hybrid electric vehicles and batteries. Before going into how that money (which had already been allocated in the stimulus bill) will be distributed, here's how the President framed the importance of electric vehicles:

Because these cars of tomorrow require the batteries of tomorrow, I am announcing that the Department of Energy is launching a $2 billion competitive grant program under the Recovery Act that will spark the manufacturing of the batteries and parts that run these cars, build or upgrade the factories that will produce them, and in the process, create thousands of jobs right here in America.

Show us that your idea or your company is best-suited to meet America's challenges, and we will give you a chance to prove it. And just because I'm here today doesn't exempt all of you from that challenge - every company that wants a shot at these tax dollars has to prove their worth.

We are also making a $400 million down-payment on the infrastructure necessary to get these cars on the road; and because these cars won't leave the showroom unless consumers buy them, the Recovery Act includes a new tax credit of $7,500 to encourage Americans to plug one in at home.

How That Money is Divided Up:
Up to $1.5 billion in grants to US-based manufacturers to produce "advanced battery components" for plug-in electric hybrid vehicles.

Up to $500 million in grants to US-based manufacturers to produce other components needed for electric vehicles, such as electric motors and other components.

Up to $400 million to demonstrate and evaluate plug-in hybrids and other electric infrastructure concepts, like truck stop charging stations, electric rail and training for technicians to build and repair electric vehicles.

More: White House Blog

via: AFP
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