The Biden administration is set to allocate $1.7 billion to assist automobile manufacturers such as General Motors, Fiat Chrysler, and Volvo in rebuilding or expanding electric vehicle manufacturing and assembly bases in eight states across the United States.
According to the Associated Press, the White House announced on Thursday (July 11) that the Department of Energy will issue a total of $1.7 billion in subsidies to create or retain thousands of jobs in the automotive industry, supporting communities that have long driven the American economy primarily through car production. These states include battlegrounds in presidential elections – Michigan, Pennsylvania, and Georgia, as well as Ohio, Illinois, Indiana, Maryland, and Virginia.
The White House stated that this funding covers a wide range of areas in the automotive supply chain, including components for electric motorcycles and school buses, hybrid systems, heavy-duty commercial truck batteries, and SUV electric vehicles.
President Biden remarked in a statement, “Building a clean energy economy can and should be a win-win for union autoworkers and auto manufacturers.” This investment will create thousands of high-paying jobs by helping automobile manufacturers retool, re-start, and rehire at existing factories while preserving existing jobs.
Biden mentioned that these grants will be funded by the “2022 Inflation Reduction Act” and will help fulfill his commitment to ensuring that the future of the American automotive industry is created by American union workers.
Former Michigan Governor and Secretary of Energy Jennifer Granholm stated, “Nothing is more difficult for a manufacturing community than job losses due to foreign competition and industry changes.” She pointed out that even competitors like China, who invest heavily in the electric vehicle field, will face similar challenges.
She said that the allocation will help “ensure that our automotive industry remains competitive and stays competitive within communities and workforce teams that support automotive industry development for generations.”
Granholm and other officials noted that since Biden took office, private sector investments in electric vehicles and battery manufacturing have reached $177 billion, with the new allocation supplementing these investments.
The White House stated that if the funding is completed as planned, it will create over 2,900 jobs and help retain around 15,000 union workers in all 11 facilities.
Biden has made electric vehicles a key component of his climate agenda. White House climate adviser Ali Zaidi said, “We are not only providing new sources for clean transportation – the iconic yellow school bus has become an environmentally friendly green vehicle, and we are also providing Americans with choices, allowing them to save thousands of dollars in fuel and maintenance costs during the vehicle’s use.”
Companies expected to receive funding include Blue Bird Body Co., which will receive nearly $80 million to convert a factory in Georgia from diesel-powered buses to electric school bus production.
Fiat Chrysler will receive nearly $335 million to convert an idle assembly plant in Illinois to assemble electric vehicles, as well as a separate $250 million grant to convert a transmission plant in Indiana to produce electric vehicle drive modules.
General Motors will receive $500 million to convert an assembly plant in Lansing, Michigan, to produce electric vehicles. The White House noted that General Motors’ production line will further support ongoing investment in the American battery supply chain, benefiting from it to accelerate the commercialization of advanced and affordable electric vehicles.
Harley-Davidson will receive $89 million to expand a factory in York, Pennsylvania, to produce electric motorcycles.
The Volvo Group will receive $208 million to upgrade three manufacturing plants to supply and manufacture heavy-duty trucks under the Mack and Volvo brands. These three factories are located in Macungie, Pennsylvania, Dublin, Virginia, and Hagerstown, Maryland.