The Biden administration has announced plans to award nearly $1.1 billion in grants to General Motors (GM) and Stellantis to convert existing plants for electric vehicle and component production. This initiative is part of a broader $1.7 billion effort by the Department of Energy (DOE) to support the conversion of 11 “at risk” plants across eight states, aiming to enable the production of 1 million EVs annually, retain 15,000 jobs, and create 3,000 new positions.
Energy Secretary Jennifer Granholm emphasized that these awards are a key element of the Biden administration’s industrial strategy, which aims to modernize historic auto manufacturing facilities. She highlighted the need for federal support to help U.S. automakers compete globally, particularly against countries that heavily subsidize their auto industries.
The grants will fund projects in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia—states that hold significant political importance in the upcoming presidential election. President Biden has been actively encouraging U.S. automakers to increase EV production, offering new tax incentives, funding EV charging infrastructure, and implementing stricter emissions rules to boost EV sales.
GM is set to receive $500 million to convert its Lansing Grand River Assembly Plant in Michigan to EV production. While the plant will continue to produce the Cadillac CT4 and CT5, GM plans to make an additional unspecified investment in the future to expand EV manufacturing at the site.
Stellantis will receive $334.8 million to convert the closed Belvidere Assembly plant in Illinois for EV production and $250 million to convert its Indiana Transmission Plant in Kokomo to produce EV components. These projects are part of Stellantis’ broader plan to expand its electrified vehicle offerings, including a $3.2 billion battery plant and a new mid-size truck factory in Belvidere under a recent union contract.
Additional grants include $32 million for Hyundai Mobis in Ohio for plug-in hybrid components and battery packs, $89 million for Harley-Davidson to expand its York, Pennsylvania plant for EV motorcycle manufacturing, $80 million for Blue Bird to convert a former Georgia plant for electric school bus production, and $75 million for Cummins to convert part of an Indiana plant for zero-emission components and electric powertrain systems.
The DOE also plans to allocate $208 million to the Volvo Group to upgrade plants in Maryland, Virginia, and Pennsylvania for increased EV production capacity and $157 million to ZF North America for EV component production at its Marysville, Michigan plant.
The DOE must negotiate milestones, requirements, and conduct environmental reviews with the companies before finalizing the awards.
