ESG Today reports that for companies to qualify, they must meet some criteria, such as job retention, fair wages and contributing to the administration's plans to support disadvantaged communities.

US President Joe Biden said that "this funding from my Investing in America agenda will further that goal by creating auto manufacturing jobs here at home and helping companies avoid painful plant closings — and to retool, reboot, and rehire in the same factories and communities with high wages."

Officials at the US Department of Energy (DOE) said that the 10 billion USD loan will be offered to companies who pledge to retain high-quality jobs in communities that are already involved in vehicle manufacturing, while converting the factories to mass EV-building sites.

Additionally, the 2 billion grants will be aimed at the production of light, medium and heavy-duty electric vehicles and their components. The funding should help at the development and production of next-generation plug-in vehicles, fully electric and hydrogen-powered ones.

Also, the administration also has plans to invest 3.5 billion USD in the production of advanced batteries and battery materials, as well as grid storage solutions.