General Motors (GM) and Stellantis are set to benefit from more than $1 billion in grants from the Biden administration, aimed at advancing their EV projects. The funding is part of a broader federal initiative to support EV manufacturing across the U.S.
The U.S. Department of Energy (DoE) announced GM will receive $500 million for its Lansing Grand River Assembly/Stamping plant in Michigan, while Stellantis will get $334.8 million for its Belvidere Assembly facility in Illinois and $250 million for its planned EV drive module plant in Indiana.
These grants are part of the Domestic Manufacturing Auto Conversion Grants, funded through the Inflation Reduction Act, and are designed to help automakers transition from producing combustion-powered vehicles to electric ones.
GM's Grand River Assembly, which builds the Cadillac CT4 and CT5, will join several other GM facilities in producing EVs, 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.
On July 15, GM announced a shift in its EV production strategy, opting for a demand-driven approach rather than adhering to its previously stated goal of producing 1 million EVs in North America by the end of 2025.
GM CEO Mary Barra elaborated on the decision during an event July 15. "Just because the market's not developing, but it will get there. And so we're going to be guided by the customer," Barra explained.
Stellantis indefinitely idled Belvidere Assembly in February 2023. The plant last produced Jeep Cherokees. In October 2023, Stellantis said it would reopen the plant after reaching an agreement with the UAW on a new labor contract. It is expected to reopen sometime next year.
The grants are part of a $1.7 billion federal investment in EV-related initiatives across eight states, expected to create more than 2,900 jobs and retain 15,000 highly skilled union workers. The funds will support the conversion of 11 shuttered or at-risk auto manufacturing and assembly facilities, to enable them to manufacture EVs and their supply chain. The facilities are located in Michigan, Indiana, Illinois, Pennsylvania, Ohio, Virginia, Maryland and Georgia.
Also benefiting from the grants are Blue Bird Body Company, which will get $79 million to convert a Georgia plant to build electric buses; Harley-Davidson, which will get $89 million to prepare its York, PA, plant to build electric motorcycles; and Volvo, which will receive $208 million to convert plants in Pennsylvania, Virginia and Maryland to build electric commercial trucks.
Energy Secretary Jennifer Granholm emphasized the competitive edge these grants provide to U.S. automakers.
“There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry. 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,” Granholm said.
