The Biden administration announced a $1.7 billion plan to convert closed-down or at-risk auto manufacturing and assembly facilities into electric vehicle (EV) and hybrid vehicle production sites across eight states, including Michigan, Pennsylvania, and Georgia. The funding comes as the growth rate of EV sales has slowed down despite increasing interest from mass market consumers. This investment aims to create thousands of good-paying union jobs while retaining existing ones in the auto industry.
One of the facilities set to receive funding is a Stellantis factory in Belvidere, Illinois, which will be converted into an EV assembly plant using $334 million in grant money. The company will also receive an additional $250 million to retrofit its transmission plant for the production of electric drive modules.
Another recipient is General Motors' 25-year-old factory in Lansing, Michigan, which will produce electrified models with a $500 million grant. Harley-Davidson's facility in York, Pennsylvania, will become an electric motorcycle assembly plant with $89 million.
Blue Bird Corporation's Fort Valley, Georgia facility plans to make electric school buses and will receive nearly $80 million. Several other factories across Ohio, Indiana, Maryland, and Virginia will also benefit from the grants.
The Biden administration emphasizes that these investments are crucial for the future of the auto industry in America and for creating jobs in communities that have long driven the U.S. economy.
It is important to note that this investment comes as growth in new electric vehicle sales has slowed down, even as total EV sales continue to rise. The industry is currently facing challenges bridging the gap from early adopters to mass market consumers, leading some automakers to take an increased interest in the hybrid space.
The grants are part of a larger $15.5 billion program administered by the Department of Energy that seeks to retrofit existing manufacturing facilities into EV and clean vehicle assembly operations. The funding was approved as part of the Inflation Reduction Act, which is President Biden's landmark climate legislation.
The grants will help ensure that the future of the auto industry is made in America by American union workers.