Biden Administration Awards $1.1 Billion to GM and Stellantis for EV Plant Conversion

The Biden administration plans to grant nearly $1.1 billion to General Motors and Chrysler-parent Stellantis to transform existing factories to produce electric vehicles. The initiative is part of a larger $1.7 billion DOE grant targeting 11 plants across eight states to boost EV production, retain jobs, and create new positions.

The Biden administration plans to grant nearly $1.1 billion to General Motors and Stellantis to convert existing plants for electric vehicle production, an initiative revealed on Thursday.

The Department of Energy announced a broader $1.7 billion grant aimed at converting 11 'at risk' plants in eight states to support the annual production of 1 million EVs. This move aims to retain 15,000 existing jobs and create 3,000 new positions. Energy Secretary Jennifer Granholm remarked that this effort marks a key aspect of the Biden administration's industrial strategy, intended to modernize historic auto manufacturing facilities.

Granholm noted that the need for such federal support has been apparent for over a decade, especially as U.S. automakers compete with subsidized foreign counterparts. The grants will benefit plants in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia — crucial states for the upcoming presidential election.

According to Granholm, General Motors will receive $500 million to convert its Lansing Grand River Assembly Plant in Michigan to EV production. Stellantis will get $334.8 million to convert its Belvidere, Illinois plant and $250 million for its facility in Kokomo, Indiana. Other notable awards include $89 million for Harley-Davidson, $80 million for Blue Bird, and $75 million for Cummins.

Although the grants are promising, finalization requires detailed negotiations and environmental reviews.