The Biden administration just announced its plans to provide nearly $1.1 billion in grants to General Motors and Stellantis to help existing plants gain the ability to produce electric vehicles and components. In total $1.7 billion will be given out in grants to multiple companies to help with the conversion of 11 “at risk” plants in key electoral states. The grant aims to support the production of 1 million EVs annually while creating 3,000 jobs and retaining 15,000 jobs.
Energy Secretary Jennifer Granholm said that in order for automakers to embrace the future they “needed a federal partner especially to compete with other countries who were subsidizing their auto industries and that’s what this massive investment is all about.” This grant adds to President Biden’s list of favorable EV policies where he has already introduced new tax incentives, funded EV charging stations, and issued new emissions rules to boost the EV sales.
Before the grant money is finalized and sent out to the companies, the Department of Energy still needs to complete final negotiations with the companies to determine project milestones and environmental impact.
Breakdown of Grant Money
· $500 million for General Motors’ Lansing Grand River Assembly Plant in Michigan
· $584 million for Stellantis’ Belvidere Assembly plant in Illinois and its Indiana
Transmission plant.
· $32 million for Hyundai Mobis to produce hybrid components and battery packs in Ohio.
· $89 million for Harle-Davidson’s EV motorcycle manufacturing in Pennsylvania.
· $80 million for Blue Bird’s electric school buses.
· $ 75 million for Cummins to produce zero-emission components and electric powertrain systems in Indiana.
· $208 million for Volvo Group to upgrade its EV production capacity on the east coast.
· $157 million for ZF North America to produce EV components in Michigan.
Comments