The Biden Administration announced a joint initiative with Monroe Capital LLC to launch a $1 billion fund to help small to medium-sized auto suppliers shift from gasoline-powered to electric vehicles. The White House and Monroe are calling their joint initiative the Drive Forward Fund.
“We believe this new Drive Forward Fund will be critical to catalyzing growth and innovation within America’s automotive supply chain,” Monroe CEO Ted Koenig said.
Monroe specialists explained that small to medium-sized auto suppliers may lack access to finances, which may prevent them to expand EV component production. The Drive Forward Fund will help auto parts suppliers receive lower-cost loans to help them “refinance, grow, and diversify their businesses.”
The $1 billion fund will be supported by low-cost government-guaranteed lending through a US Small Business Administration license. It is expected to help over 250,000 people across the United States who work for small to medium-sized auto suppliers.
“A successful EV transformation “requires a cutting-edge automotive supply chain that keeps the country competitive and underpins our economic and national security,” Bozzella said.
Strengthening and expanding the US auto supply chain is essential to expanding domestic EV production in the United States. The EV industry has seemingly become a new frontier for many companies and nations to conquer. Many countries have noticed that China remains a fierce opponent in the global EV industry.
The United States and Canada proposed imposing 100% tariffs on Chinese EV imports. Meanwhile, the European Commission proposed tariffs as high as 35.5% on China-made EV imports. China’s Ministry of Commerce has spoken out against tariffs in Europe and Canada. It has said little about the tariffs in the United States.
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