The Biden administration is awarding nearly $2 billion in grants to carmakers like General Motors and Stellantis to restart or expand electric vehicle (EV) manufacturing and assembly in eight states, including key battlegrounds Michigan, Pennsylvania, and Georgia.
Significant Investment to Support Auto Communities
The Energy Department will issue $1.7 billion in grants to create or retain thousands of union jobs and support auto-based communities. Besides the three battleground states, the grants will also benefit EV facilities in Ohio, Illinois, Indiana, Maryland, and Virginia.
The grants cover various parts of the automotive supply chain, including components for electric motorcycles, school buses, hybrid powertrains, commercial truck batteries, and electric SUVs.
Major Beneficiaries and Their Plans
General Motors (GM) will receive a $500 million grant to convert an assembly plant in Lansing, Michigan, to produce EVs. GM has already announced over $12 billion in North American EV manufacturing and supply chain investments since 2020. Camilo Ballesty, GM’s Vice President of North America Manufacturing and Labor Relations, said this investment underscores GM’s commitment to U.S. leadership in manufacturing and innovation.
Stellantis, which includes brands like Fiat, Chrysler, Jeep, and Dodge, will receive a total of $585 million. This includes $335 million to convert an idled assembly plant in Illinois for EV assembly and $250 million to convert an Indiana transmission plant for EV drive modules. Stellantis has also pledged to build a new $3.2 billion battery plant in Illinois.
Federal Support and Economic Impact
These grants, funded by the 2022 climate law, are part of President Biden’s commitment to ensure the future of the auto industry is American-made and supported by American union workers. Energy Secretary Jennifer Granholm emphasized the importance of these grants in keeping the U.S. automotive industry competitive, especially against foreign competition.
The grants will complement $177 billion in private sector investment in EV and battery manufacturing since Biden took office. The selected projects are expected to create over 2,900 jobs and retain about 15,000 union workers across 11 facilities.
Broader Impact and Future Prospects
The grants come after successful union organizing drives and aim to boost the U.S. auto industry while supporting clean energy initiatives. Transportation is the largest source of U.S. greenhouse gas pollution, and Biden has made electric vehicles a key part of his climate agenda.
The Biden administration continues to support the U.S. auto industry, with ongoing efforts to enhance EV manufacturing and provide sustainable, clean transit options for the American public.
Source: dunyanews.tv
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