October 20, 2022 10:42am EDT
Biden gives $2.8 billion to battery companies that commit to ESG agenda
The administration said committing to diversity, equity and other goals was a condition of receiving the money
By Peter Kasperowicz FOXBusiness
The Biden administration awarded $2.8 billion this week to 20 companies after they pledged to honor Democratic goals like diversity, equity and inclusion as they hire people to build batteries and related components to be used in electric vehicles.
The conditional grants are the latest attempt by the Biden administration to push its diversity, equity, inclusion and accessibility (DEIA) agenda into the private sector. Last month, DEIA leaders from several agencies met and agreed to extend their efforts in this area "across the federal government and our society."
It is also part of a broader trend of companies following environment, social and governance (ESG) principles as a way of earning a "responsible" brand among investors.
On Wednesday, President Biden and Energy Secretary Jennifer Granholm announced the $2.8 billion "investment" in EV battery companies and said explicitly that their decision to provide federal funding for these projects was conditioned on a promise to advance the DEIA agenda.
"The companies submitted plans for engagement with local stakeholders, Tribal nations, environmental groups, and labor unions to ensure the funded projects create high-quality jobs; advance diversity, equity, inclusion, and accessibility; and contribute meaningfully to the Justice40 initiative to provide 40% of the overall benefits of federal clean energy investments to disadvantaged and underrepresented communities," the Department of Energy said.
Of the 20 companies that won awards, five said they would boost production in "disadvantaged communities," and 13 agreed to negotiate workforce and community agreements aimed at engagement with "host communities, labor unions and/or Tribal entities to agree on community benefits and implementation plans."
Fifteen of the companies said they would collaborate with "minority serving institutions, including Historically Black Colleges and Universities (HBCUs) to hire and train workers."
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