Friday, July 12, 2024

Biden Administration Plans $1.7 Billion Grants for GM, Stellantis to Boost EV Production

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The Biden administration announced on Thursday plans to award nearly $1.1 billion in grants to General Motors (GM.N) and Stellantis, parent company of Chrysler, to convert existing plants into facilities for manufacturing electric vehicles (EVs) and components.

The Department of Energy (DOE) unveiled a $1.7 billion initiative aimed at converting 11 “at risk” plants across eight states. This transformation is projected to support the production of 1 million EVs annually, retain 15,000 existing jobs, and create 3,000 new positions.

Energy Secretary Jennifer Granholm emphasized that these grants reflect the Biden administration’s industrial strategy, aimed at modernizing historical auto manufacturing facilities. She highlighted the necessity for federal support to enable U.S. automakers to compete globally amid subsidies provided to foreign auto industries over a decade ago.

The awarded plants are located in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia, several of which are pivotal in upcoming elections.

President Joe Biden has been pushing for increased EV assembly in the United States, introducing new tax incentives and funding for EV charging infrastructure. Concurrently, stricter emissions regulations are expected to bolster EV sales.

General Motors is set to receive $500 million to convert its Lansing Grand River Assembly Plant in Michigan for future EV production. The company plans additional investments for EV manufacturing at this location while continuing production of the Cadillac CT4 and CT5.

In a separate move, Stellantis has been earmarked for $334.8 million to convert its shuttered Belvidere Assembly plant in Illinois for EV production, along with $250 million for converting its Indiana Transmission Plant in Kokomo to produce EV components.

Hyundai Mobis, operating as a Stellantis supplier in Ohio, will receive $32 million to produce plug-in hybrid components and battery packs under the DOE’s initiative.

Other grants include $89 million for Harley-Davidson to expand its Pennsylvania plant for EV motorcycle production, $80 million for Blue Bird to convert a Georgia facility into an electric school bus plant, and $75 million for Cummins to produce zero-emission components and electric powertrain systems at its Indiana plant.

The DOE’s plans also allocate $208 million for the Volvo Group to enhance EV production capacity at plants in Maryland, Virginia, and Pennsylvania, and $157 million for ZF North America to convert part of its Michigan facility for EV component production.

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