As part of President Joe Biden’s ”Investing in America” agenda, the U.S. Department of Energy (DOE) will provide $1.7 billion to convert 11 shuttered or at-risk auto manufacturing and assembly facilities for the production of electric vehicles and their supply chain.

The funding will be allocated to Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia.

The department says the investments will create and retain thousands of “good-paying” union jobs and support the American auto communities that “have driven the U.S. economy for generations.”

“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 a July 11 news 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.”

Reuters reports she told reporters that the awards were a “hallmark of the Biden administration’s industrial strategy” and would “modernize historical auto manufacturing facilities.”

John Podesta, senior advisor to the president for international climate policy added, “President Biden set out to build a clean energy economy that benefits everyone. Today’s awards from the Department of Energy help bring that vision to life by investing in the future of the auto industry, creating thousands of good-paying union jobs, and tackling the existential threat of climate change by cutting pollution from the transportation sector.”

The Domestic Manufacturing Auto Conversion Grants program is funded by the Inflation Reduction Act to invest in the domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell EVs. The program aims to expand manufacturing of light-, medium-, and heavy-duty electrified vehicles and components and support commercial facilities including those for vehicle assembly, component assembly, and related vehicle part manufacturing, the DOE said.

The award selections will be negotiated to ensure commitments to workers and communities, according to the DOE.

DOE will also complete environmental reviews to ensure the awards are consistent with the Biden Administration’s commitments to clean, environmentally responsible manufacturing, and include appropriate mitigation as needed, the release states.

If awarded, the selected projects would collectively create more than 2,900 new high-quality jobs and ensure more than 15,000 highly skilled union workers are retained across all 11 facilities, according to the DOE.

The funding announcement complements $177 billion in private sector investment in EV and battery manufacturing spurred by Biden’s “Investing in America” agenda, the release states.

“Today’s announcement from the Department of Energy is a big win for the American people and demonstrates President Biden’s bold vision for how we are choosing to take on the climate crisis — with America’s workers leading the way,” said Assistant to the President and National Climate Advisor Ali Zaidi, in the release. “This ground-breaking program is central to catalyzing expansion of the industrial capacity to help us meet the President’s climate goals and allow tens of thousands of skilled American workers to participate in the great comeback story of American manufacturing.”

General Motors shared it will receive $500 million through the grant program for its GM Lansing Grand River facility. Luxury and performance vehicles have been built there for more than 20 years, according to the OEM.

The news “builds on our bigger commitment to building a resilient supply chain and offering customers a wide choice of vehicles,” GM said in a news release.

“In fact, we’ve announced over $12 billion in investments for our North American EV manufacturing and supply chain development since 2020. Lansing Grand River will join other GM plants on our EV journey including Factory ZERO Detroit-Hamtramck Assembly Center and Orion Assembly in Michigan, Spring Hill Manufacturing in Tennessee, Fairfax Assembly in Kansas, and Toledo Propulsion Systems in Ohio. Plus, we continue to invest in an array of GM component, stamping, and propulsion plants.”

GM, along with its suppliers and joint venture partners, have made multi-billion-dollar investments for the production of EV raw materials, processed materials, and components including battery cells, GM said.

“GM’s investment and this Department of Energy grant underscore our commitment to U.S. leadership in manufacturing and innovation, making sure we’re competitive at home and abroad,” said Camilo Ballesty, GM vice president of North America Manufacturing and Labor Relations, in the release. “Our Lansing Grand River team produces incredible vehicles for our customers, and we’re proud to bring our commitment to performance and quality into our EV future.”

Lansing Grand River will continue to produce the Cadillac CT4 and CT5 (including V-Series). More details about timing, future products, and volume will be provided “down the road,” GM said.

The full list of grant projects can be found here.

Selected projects will support workers with job and technical training, childcare, and retirement and transportation benefits, according to the release. The DOE says the program also works with and encourages awardees to engage and collaborate with adjacent disadvantaged communities on education, health, climate, and clean energy.

Images

Featured image: GM’s Lansing Grand River production facility in Michigan. (Provided by GM)