U.S. Energy Secretary Jennifer Granholm said on Tuesday that the U.S. Department of Energy is moving swiftly to finalize $1.7 billion in grants to convert automotive plants for electric vehicle (EV) production. The funding is intended to help major automakers, like General Motors and Stellantis, transition existing facilities to EV production, part of the Biden administration’s broader push to dominate the global EV market.
“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,” Granholm said during an interview at the Reuters Next conference. She emphasized that the goal is to have agreements within the next few months.
In July, the Energy Department announced it would allocate $500 million to help GM convert its Lansing Grand River Assembly Plant in Michigan to produce EVs. Similarly, Stellantis is set to receive $334.8 million to convert its shuttered Belvidere Assembly Plant in Illinois for EV production and $250 million to upgrade its Indiana Transmission Plant in Kokomo to manufacture EV components.
However, there has been friction surrounding the timeline of these conversions. The United Auto Workers (UAW) union has threatened strikes over delays in Stellantis’ Belvidere investment, prompting the automaker to file lawsuits to prevent work stoppages. Granholm acknowledged the challenges but indicated ongoing discussions. “There’s a whole array of considerations concerning that, and we are conversing about it,” she noted.
The push to finalize the grants comes as UAW President Shawn Fain warned that hundreds of thousands of U.S. jobs could be at risk if Donald Trump wins the presidential election and follows through on his threat to roll back EV investments. Trump has criticized EV production, arguing that it threatens traditional U.S. jobs.
Moreover, democrats have spotlighted the uncertainty surrounding the $500 million GM grant, particularly after Trump’s running mate, U.S. Senator JD Vance, declined to commit to maintaining it. While GM remains in the negotiation phase for the grant, Stellantis has yet to comment on the matter.
Despite the political and labor tensions, both GM and Stellantis saw modest gains in their stock values, with GM shares rising 9.7% on Tuesday and Stellantis shares edging up 0.5%.
Granholm reaffirmed the Biden administration’s commitment to the EV transition, emphasizing the robust industrial strategy. “This time, the United States government is not effing around,” she said, stressing the government’s role in cutting costs, securing supply chains, and fostering technological innovation.
As the global market for electric vehicles grows, Granholm stressed that U.S. automakers must keep pace and lead the charge. “America’s automakers are in this amazing race to dominate this industry,” she said, “and to ensure that as EVs take over the global market, places like Detroit aren’t just keeping up but setting the pace.”
