Monroe Capital is partnering with the White House to launch a billion-dollar initiative geared towards improving the country’s landscape for electric vehicles (EV), the firm announced Monday.
The project, known as the “Drive Forward Fund LP,” aims to support small and medium-sized companies with supply chain challenges for electric vehicles and enhance the development of new auto technology for drivers.
“Looking ahead, we believe the automotive industry is poised for transformative changes driven by advancements in electric vehicles (“EVs”), hydrogen fuel cell technology, and autonomous driving systems, among others,” Alex Parmacek, portfolio manager for the fund at Monroe, said in a statement.
“We believe a shift towards clean energy and sustainable vehicles can play a role in efforts to reduce carbon emissions and create a more durable supply base for the [original equipment manufacturers] and Tier I suppliers.”
It added the firm would steer investment toward “businesses that align with White House’s pledge to ensure that the future of the automotive industry is made in America by American manufacturers and American autoworkers in the communities that have historically powered the industry.”
The move comes after Vice President Harris announced a more than $100 million public investment in expanding small and medium-sized auto manufacturers’ access in May.
“Investing in the ambitions and aspirations of our people is the best way to grow the American economy and the middle class,” she said during the announcement in Detroit.
The U.S. Treasury Department also announced a $9.1 million grant to launch the Michigan Auto Supplier Transition Program on Monday to help smaller enterprises purchase the pieces needed to produce EVs domestically.
Last year, the Biden administration released new guidance on eligibility for EV tax credits and placed high tariffs on Chinese EVs and batteries earlier this year opening the market for more American-made vehicles.