The U.S. Department of Energy has announced a $15.5 billion package of funding and loans primarily focused on retooling existing factories for the transition to electric vehicle (EV) production.

A break down of the $15 billion includes $2 billion in grants and up to $10 billion in loans to support automotive conversion projects that retain high-quality jobs in communities that host the existing factories.

Called the Domestic Conversion Grant Program, companies will receive a grant based on scores relative to if the proposed project will retain collective bargaining agreements or those that have existing high-quality high-wage hourly workforce.

The program aims to support a just transition for workers and communities in the transition to electrified transportation, with particular attention to communities supporting facilities with longer histories in automotive manufacturing, according to an announcement made by the DOE.

Preference will also be given to projects that commit to pay high wages for production workers and maintain collective bargaining agreements. 

Additionally, a notice of intent has been made to provide $3.5 billion in funding to expand domestic manufacturing of batteries for electric vehicles and the nation’s grid, as well for battery materials and components currently imported from other countries. 

Both the conversion grant funding opportunity and battery manufacturing notice will be administered by the Office of Manufacturing and Supply Chains.