The Biden administration has announced nearly $2 billion in grants to reinvigorate and expand electric vehicle (EV) manufacturing and assembly facilities across eight states, including key battlegrounds Michigan, Pennsylvania, and Georgia. The move aims to create or retain thousands of union jobs and bolster auto-centric communities that have historically underpinned the U.S. economy, according to a statement from the White House on Thursday.
Details of the Grant Allocation
The U.S. Department of Energy will distribute $1.7 billion in grants, targeting a broad spectrum of the automotive supply chain. This includes components for electric motorcycles and school buses, hybrid powertrains, heavy-duty commercial truck batteries, and electric SUVs. Besides Michigan, Pennsylvania, and Georgia, the funds will support facilities in Ohio, Illinois, Indiana, Maryland, and Virginia.
“Building a clean energy economy can and should be a win-win for union autoworkers and automakers,” President Joe Biden stated. “This investment will create thousands of good-paying, union manufacturing jobs and retain even more — from Lansing, Michigan, to Fort Valley, Georgia — by helping auto companies retool, reboot, and rehire in the same factories and communities.”
Impact on Major Automakers
General Motors (GM) is set to receive $500 million to convert its assembly plant in Lansing, Michigan, for EV production. The grants support GM’s commitment to expanding its EV offerings, following over $12 billion in investments in its North American EV manufacturing and supply chain since 2020. Fiat Chrysler will receive nearly $335 million to convert an idle assembly plant in Illinois for EV assembly and $250 million to repurpose an Indiana transmission plant for electric drive modules. Harley-Davidson is earmarked $89 million to expand its Pennsylvania facility for electric motorcycles, while Volvo Group will receive $208 million to upgrade three manufacturing plants for heavy-duty trucks.
Broader Economic and Environmental Goals
The grants, funded by the 2022 climate law, reinforce Biden’s vision of ensuring the future of the auto industry is “made in America by American union workers.” Biden emphasized the reversal of job losses under his predecessor, stating, “Workers that were left behind by my predecessor are now making a comeback with the support of my policies, including the conversion grants my administration is announcing today.”
Political and Economic Context
The announcement coincides with a critical period for Biden, who is navigating political challenges after a poor debate performance. Amid these dynamics, former President Donald Trump continues to exert significant influence over the Republican party despite his legal issues. Energy Secretary Jennifer Granholm highlighted the importance of these grants in keeping the U.S. automotive industry competitive against global players like China.
Future Prospects
In addition to the nearly $2 billion in grants, there has been $177 billion in private sector investment in EV and battery manufacturing since Biden took office. The administration’s commitment to the auto industry also includes plans to ensure that selected projects create over 2,900 new jobs and secure approximately 15,000 union positions across 11 facilities.
White House national economic adviser Lael Brainard reaffirmed Biden’s dedication to the U.S. auto industry, noting that transportation remains the largest source of U.S. greenhouse gas emissions. Ali Zaidi, White House climate adviser, added that transitioning to electric vehicles will not only provide cleaner transportation but also offer significant savings on fuel and maintenance for American consumers.
Notable Awards
Among the recipients, Blue Bird Body Co. will receive nearly $80 million to convert a Georgia site from diesel motor homes to electric school buses. Additionally, Volvo Group’s $208 million will enhance manufacturing in Pennsylvania, Virginia, and Maryland for Mack and Volvo-branded trucks.
Conclusion
This significant federal investment is set to accelerate the transition to electric vehicles, support union jobs, and maintain the competitiveness of the U.S. automotive industry. By addressing both economic and environmental goals, the Biden administration aims to position the U.S. as a leader in the global shift towards sustainable transportation.