Dive Brief:
- The Department of Energy announced $1.7 billion to support the conversion of 11 shuttered or at-risk auto manufacturing and assembly plants to produce and supply electric vehicles, according to a Thursday press release.
- The factories — including facilities owned by Stellantis, General Motors and Volvo — are located in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland and Virginia.
- The selected projects would collectively create over 2,900 new jobs and retain 15,000 union workers across the facilities.
Dive Insight:
Selectees of the Domestic Manufacturing Auto Conversion Grants program, funded by the Inflation Reduction Act, will negotiate for awards to manufacture automotive supply chain products, including parts for electric motorcycles, school buses, hybrid powertrains, heavy-duty truck batteries and electric SUVs.
“There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry,” said U.S. Secretary of Energy Jennifer M. Granholm in the release. “Even as our competitors invest heavily in electric vehicles, these grants ensure that our automotive industry stays competitive — and does it in the communities and with the workforce that have supported the auto industry for generations.”
The awards are still subject to negotiations to meet commitments to workers and communities, and will undergo DOE environmental reviews.
The automotive conversion grant selectees, in order of anticipated award amount, are:
- General Motors ($500 million): EV conversion in Lansing, Michigan.
- Stellantis ($335 million): Conversion of an assembly plant to a vehicle assembly complex for electrification in Belvidere, Illinois.
- Stellantis ($250 million): Conversion of a transmission plant for electric drive modules in Kokomo, Indiana.
- Volvo Technology of America ($208 million): A conversion of fossil fuel commercial trucks to zero emissions for Volvo Group's Mack and Volvo brands in Macungie, Pennsylvania; Dublin, Virginia; Hagerstown, Maryland.
- ZF North America ($158 million): E-mobility conversion in Marysville, Michigan.
- Harley Davidson ($89 million): EV conversion in York, Pennsylvania.
- Blue Bird Body Company ($80 million): Blue Bird bus EV manufacturing conversion project in Fort Valley, Georgia.
- Cummins Electrified Power NA ($75 million): Convert an engine plant in Columbus, Indiana, for manufacturing zero-emissions components and electric powertrain systems.
- American Autoparts ($33 million): A plug-in hybrid EV conversion and battery system assembly plant construction in Toledo, Ohio
As part of President Joe Biden’s Justice40 Initiative, selected projects will provide support for workers including job and technical training, childcare, retirement and transportation benefits, the release stated.
