Monroe Capital is partnering with the White House to launch a $1 billion initiative to improve the nation's electric vehicle (EV) landscape, the company announced Monday.
The project, known as the Drive Forward Fund LP, aims to support small and medium-sized businesses facing challenges in the electric vehicle supply chain and bolster the development of new automotive technologies for drivers.
“We believe the auto industry is poised for transformative change driven by advances in electric vehicles, hydrogen fuel cell technology and autonomous driving systems,” Alex Palmacek, portfolio manager of the fund at Monroe, said in a statement.
“We believe the transition to clean energy and sustainable vehicles can play a role in our efforts to reduce carbon emissions and build a more durable supply base. [original equipment manufacturers] and Tier I suppliers.”
The company added that it would direct its investments to “businesses that align with the White House pledge to ensure that the future of auto is made in America, by American manufacturers and American autoworkers in the communities that have historically driven the auto industry.”
The move was made by Vice President Harris. Announced In May, the government invested more than $100 million to expand access for small and medium-sized automakers.
“Investing in the ambitions and aspirations of our people is the best way to grow America's economy and middle class,” she said during the announcement in Detroit.
The U.S. Treasury Department also announced $9.1 million in grant funding Monday to launch the Michigan Automotive Supplier Transition Program, which will help small businesses buy parts they need to produce EVs domestically.
The Biden administration issued new guidelines for eligibility for EV tax credits last year and imposed heavy tariffs on Chinese-made EVs and batteries earlier this year, opening the market to more American-made vehicles.
