The Biden administration announced a $1.7 billion federal assistance package aimed at helping automakers retool their factories to produce electric vehicles (EVs). The funding, unveiled by the Department of Energy, targets 11 auto factories that have either shut down or were at risk of closure without government intervention.
“There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry,” U.S. Secretary of Energy Jennifer Granholm said in a statement. “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.”
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The recipients of this funding include major automakers such as General Motors (GM), Hyundai, Fiat Chrysler and Volvo, among others. However, the funds will not be awarded until negotiations with these companies are successfully completed. Once finalized, the administration expects the plan to create nearly 3,000 new jobs and help retain approximately 15,000 workers across the 11 facilities.
GM is set to receive the largest portion of the funds, with an expected $500 million allocated to convert a Michigan plant from producing internal combustion engine vehicles to electric vehicles. This significant investment underscores the administration’s commitment to accelerating the transition to EVs.
Since President Joe Biden took office, there has been $177 billion invested in private sector EV manufacturing. This new wave of grants aims to complement those investments and is part of the administration’s broader push to promote electric vehicle adoption.
