GM and Stellantis to be given $1.1 billion for EV production
The Biden administration plans to give General Motors (GM) and Stellantis almost $1.1 billion in grants to convert existing plants to build EVs and components.
The Department of Energy (DOE) announced that $1.7 billion in planned grants would be used to help fund the conversion of 11 "at risk" plants in eight states to enable the production of 1 million EVs annually, help retain 15,000 existing jobs, and create 3,000 new positions.
Energy secretary Jennifer Granholm told reporters the awards were a "hallmark of the Biden administration's industrial strategy" and would "modernize historical auto manufacturing facilities."
Granholm also said it had become clear that automakers " needed a federal partner especially to compete with other countries who were subsidizing their auto industries and that's what this massive investment is all about.
The awards are for plants in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia–many of which are key states in the November presidential election.
President Joe Biden has encouraged U.S. automakers to assemble a rising number of EVs, introduced new tax incentives, and funded EV charging stations. Regulators have also issued stricter emissions rules that will boost EV sales.
Donald Trump has criticized Biden's EV policies and vows to reverse them if he were to be elected. The White House is courting union workers in key battleground states and hopes to reassure autoworkers that EVs will not cost jobs.
GM will receive $500 million to convert its Lansing Grand River Assembly Plant in Michigan to EVs at an unspecified date. GM said it will make its own investment to produce EVs in Lansing, but said the plant will continue to produce the Cadillac CT4 and CT5.
In October, Stellantis agreed to build a new $3.2 billion battery plant and invest $1.5 billion in a new mid-size truck factory in Belvidere, Illinois under a new union contract.
The DOE plans to award Stellantis $334.8 million to convert the closed Belvidere Assembly plant to build EVs and $250 million to convert its Indiana Transmission Plant in Kokomo to produce EV components.
Stellantis said the expected awards were "an important step in continuing to expand our electrified vehicle offerings."
Hyundai Mobis, which operates a Stellantis supplier in Ohio, will receive $32 million to produce plug-in hybrid components and battery packs.
Additional awards have been given to Harley-Davidson, $89 million to expand its York, Pennsylvania plant for EV motorcycle manufacturing; Blue Bird received $80 million to convert a former Georgia plant to build electric school buses; and $75 million was given to Cummins to convert part of an existing Indiana plant to make zero-emission components and electric powertrain systems.
The DOE also plans $208 million for the Volvo Group to upgrade plants in Maryland, Virginia, and Pennsylvania to increase EV production and capacity and $157 million for ZF North America to convert part of its Marysville, Michigan plant for EV component production.
The DOE still has to complete negotiations with companies on milestones and other requirements and complete environmental reviews before the awards are finalized.
