Biden Injects $1.7 Billion to Transform Auto Plants into EV Factories
The Biden administration is allocating nearly $2 billion in grants to convert or expand electric vehicle (EV) manufacturing and assembly facilities across eight states, including Michigan, Pennsylvania, and Georgia. The Department of Energy will distribute $1.7 billion to retool 11 auto factories to support the production of EVs and their components. This funding is part of a larger $15.5 billion program aimed at modernizing the U.S. automotive industry and is financed by the Inflation Reduction Act of 2022.
The initiative is expected to create more than 2,900 new jobs and retain approximately 15,000 existing union positions. The grants will cover a wide range of the automotive supply chain, including parts for electric motorcycles, school buses, hybrid powertrains, heavy-duty commercial truck batteries, and electric SUVs. Among the facilities benefiting from the funds are an idled Stellantis factory in Belvidere, Illinois, and a General Motors factory in Lansing, Michigan. Energy Secretary Jennifer Granholm emphasized that this effort is part of the administration's strategy to modernize historic auto manufacturing sites and maintain U.S. competitiveness in the growing EV market.
