U.S. Energy Secretary Jennifer Granholm announced on Tuesday that the Department of Energy (DOE) is working swiftly to finalize $1.7 billion in grants aimed at converting factories to produce electric vehicles (EVs) and related components. Speaking on the sidelines of the Reuters Next conference, Granholm emphasized the urgency of the departmentās efforts, saying, “We are working as fast as we can to finalize as much as we can — to get the commitments in contract with all of those who have been selected.”
In July, the DOE revealed plans to allocate funds to major automakers. General Motors is set to receive support to convert its Lansing Grand River Assembly Plant in Michigan for EV production, while Stellantis, the parent company of Chrysler, has been allocated $334.8 million for converting its Belvidere Assembly Plant and $250 million for its Indiana Transmission Plant. Both conversions are part of the automaker’s shift towards EV components.
However, delays in Stellantisā planned investment in the Belvidere plant have sparked tensions with the United Auto Workers (UAW), leading to potential strike threats. Granholm acknowledged the complexity of the situation, noting that discussions are ongoing.
Granholm highlighted the Biden administrationās robust industrial strategy to support automakers in the transition to EV production. “This time, the United States government is not effing around,” she said, stressing the government’s role in helping automakers cut costs, secure supply chains, and remain globally competitive.
The Energy Secretary also emphasized the importance of ensuring U.S. dominance in the growing global EV market. “America’s automakers are in this amazing race to dominate this industry,” she said, adding that the goal is for places like Detroit to “set the pace” in the transition to electric vehicles.