WASHINGTON (Michigan News Source) – The U.S. Department of Energy is moving full steam ahead with its plan to force the auto industry to switch from gas to electric vehicles (EVs), and it will encourage that transition sooner rather than later with $12 billion in loans and grants.

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The Energy Department, lead by former Michigan Governor Jennifer Granholm, will shell out $2 billion in grants and $10 billion in loans to support the conversion of automakers and suppliers into manufacturing centers for hybrid and electric vehicles.

The Biden administration wants to require EVs to make up two-thirds of new cars sold in the United States by 2032. In addition, it wants zero carbon emissions by 2050.

“[This shows] that President Biden understands that building the cars of the future also necessitates helping the communities challenged by the transition away from the internal combustion engine,” said  Granholm.

The Energy Department also said it plans to invest a separate $3.5 billion to boost production of advanced batteries and battery materials to support the country’s transition to electric vehicles and clean energy.

The move comes as the UAW and “The Big 3” continue contract negotiations. The union voted to authorize a strike on September 14 if a contract is not reached by then.

In addition, Gov. Gretchen Whitmer has much to gain with the EV loans and grants. Her administration is pushing hard for megasites in at least four Michigan locations which will manufacture batteries for EVs. Her plans are being met with pushback in communities like Big Rapids and Marshall because of the ties to Chinese companies.