The effort — a collaboration between federal and state agencies — is meant to train or retrain workers through apprenticeships, high school programs and community colleges.
"As the country accelerates into an electric vehicle (EV) future, President Biden is committed to ensuring that the workers, unions, and businesses that have historically powered the auto industry lead the next generation of clean vehicles," the White House said in a press release.
Transitioning to zero-emission EVs and spurring more domestic manufacturing have been top priorities for Biden since he took office, but the auto industry has lagged on both fronts. EV adoption is lower than many had hoped, and automakers are only in the early stages of domestically manufacturing essential EV components, namely batteries. The new initiative shows Biden's commitment to Michigan as a key part of his economic agenda — and a key part of making the case that Michiganians should stick with him in the 2024 presidential election.
Politically, the transition to EVs has been a thorny issue for Biden in Michigan. The Detroit News was first to report last year that the United Auto Workers labor union planned to withhold an endorsement for Biden until the Democratic president showed support for a "just transition" to electric vehicles.
The influential union came around and eventually endorsed Biden, but concerns about how the EV transition will affect jobs remain.
Electric vehicles remain far less profitable for the auto industry than internal combustion engine cars. Ford Motor Co., for example, lost $1.32 billion on EVs in the first quarter of 2024, the company said this week. That represents a significant increase over a $722 million loss a year ago.
Workers have faced layoffs as the companies adjust — and continually readjust — their product mixes and expectations surrounding EVs.
But the Biden administration has remained steadfast in promoting EVs. It previously announced $15.5 billion in funding and loans to retool existing factories and support infrastructure related to EVs, and a new raft of regulations targeting vehicle emissions will push automakers to adjust.
"I asked every business owner I know — not a joke — when the federal government makes a multi-billion dollar investment in something, does that encourage you or discourage you from getting engaged? Guess what, every single solitary leader said overwhelmingly 'yes,' " Biden said during a speech Thursday in Syracuse, New York.
Biden's speech touted a deal with Micron to expand semiconductor manufacturing and the launch of workforce hubs in several states.
The new initiative will "target Detroit as well as Lansing, Grand Rapids, Marshall — places with major battery facilities going up," the White House said in an email to The Detroit News.
The Biden administration said it worked closely with Michigan stakeholders in planning the workforce hub, including Governor Gretchen Whitmer's office, the Michigan Department of Labor and Economic Opportunity, automakers and the UAW.
The U.S. Departments of Energy and Labor will be the primary federal agencies involved in the hub. The Energy Department also unveiled a new training program for battery plant jobs in Michigan last month.
Thursday's workforce hub announcement comes as Vice President Kamala Harris said she plans to visit Detroit the week after next as part of a nationwide economic opportunity tour focused on investing in communities and “building wealth.”
Harris, who starts the tour in Atlanta on April 29, is expected to emphasize the work the Biden administration has done to boost access to capital, strengthen small businesses, address housing costs, forgive student loans and medical debt and fund infrastructure projects, according to an announcement from the White House. The release did not provide a date or other details of the vice president's Detroit stop.
Harris was last in Michigan in February ahead of the state's Feb. 27 presidential primary election, when she gave a speech about abortion rights in Grand Rapids.
Michigan U.S. Sens. Debbie Stabenow, D-Lansing, and Gary Peters, D-Bloomfield Township, applauded the workforce development hub announcement in a joint statement, saying the hub will "ensure that Michigan’s workers, unions, and businesses who power our auto industry continue to lead the clean energy future. This hub will help provide existing workers and factories with the tools and support they need to play a leading role in the transition to electric vehicles."
Stabenow added, “Michigan workers are the best in the world. President Biden’s decision to locate this workforce hub in Michigan showcases our innovation and leadership in our clean energy future. This investment means that workers who have powered our auto industry for years will power the electric vehicle industry into the future.”
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