As part of his commitment to a clean energy future, President Biden is channeling billions into electric vehicle production.
The Biden administration is making a big push to boost electric vehicle (EV) production in the U.S. by awarding nearly $2 billion in grants to some of the country’s biggest automakers, including General Motors (GM) and Stellantis. This funding is part of a broader federal effort to support the transition from traditional combustion-powered vehicles to electric ones, aiming to keep the U.S. automotive industry competitive and sustainable.
GM is set to receive $500 million to convert its Lansing Grand River Assembly plant in Michigan, where it currently builds the Cadillac CT4 and CT5, to produce EVs. This move aligns with GM’s strategy to increase its EV output, joining other facilities like Factory ZERO in Detroit and Spring Hill Manufacturing in Tennessee. However, GM recently announced a shift in its EV production strategy, focusing on a demand-driven approach rather than sticking to its previous goal of producing 1 million EVs in North America by the end of 2025. GM CEO Mary Barra explained that this change is about being responsive to market demand, ensuring the company isn’t producing more EVs than the market can absorb.
Stellantis, on the other hand, is getting a significant boost with $585 million in grants. This includes $334.8 million to convert its Belvidere Assembly plant in Illinois, which had been idled since February 2023, and $250 million for a new EV drive module plant in Indiana. The Belvidere plant, which last produced Jeep Cherokees, is expected to reopen next year following an agreement with the United Auto Workers (UAW) union.
These grants are part of the Domestic Manufacturing Auto Conversion Grants funded through the Inflation Reduction Act. The overall $1.7 billion federal investment is targeted at converting 11 at-risk or shuttered auto manufacturing and assembly facilities across eight states: Michigan, Indiana, Illinois, Pennsylvania, Ohio, Virginia, Maryland, and Georgia. This initiative is expected to create more than 2,900 jobs and retain about 15,000 highly skilled union workers.
In addition to GM and Stellantis, other companies are also set to benefit from these grants. Blue Bird Body Company will receive $79 million to convert a Georgia plant for electric bus production. Harley-Davidson is getting $89 million to expand its York, Pennsylvania plant to build electric motorcycles. Meanwhile, Volvo will receive $208 million to upgrade facilities in Pennsylvania, Virginia, and Maryland for electric commercial truck production.
Energy Secretary Jennifer Granholm emphasized the importance of these grants in maintaining the competitiveness of the U.S. auto industry. She noted that the transition to electric vehicles is crucial, especially as other countries invest heavily in EV technology. Granholm highlighted that the grants will help ensure the U.S. automotive industry stays competitive while supporting communities and workers who have been integral to the industry for generations.
President Joe Biden has been a strong advocate for EVs, pushing for increased production, new tax incentives, and more EV charging stations. His administration’s policies aim to ensure the future of the auto industry is made in America by American union workers. Biden’s efforts are also part of his broader climate agenda, as transportation is the largest source of greenhouse gas pollution in the U.S. By supporting the shift to EVs, the administration hopes to reduce emissions and provide consumers with cost-effective alternatives to traditional vehicles.
Indeed, the nearly $2 billion in grants awarded by the Biden administration are a significant step toward transforming the U.S. auto industry, supporting union jobs, and promoting clean energy. With these investments, the future of American auto manufacturing looks increasingly electric and sustainable.
