Biden administration awards $325M to upgrade Indiana plants for EV components production
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Cummins Inc. and Stellantis are among the manufacturers in eight states that will receive a total of $1.7 billion in federal grants to help restart or expand electric vehicle manufacturing and assembly sites.
The Energy Department announced the grants Thursday, saying the funding will “support the conversion of 11 shuttered or at-risk auto manufacturing and assembly facilities” to manufacture electric vehicles and components.
In addition to the Cummins and Stellantis sites in Indiana, other awards will to go facilities in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Maryland and Virginia.
Stellantis will receive $250 million to convert a Kokomo transmission plant to produce electric vehicle components, the Energy Department said, which will result in the retention and upskilling of 585 employees.
Columbus, Indiana-based Cummins is in line to receive a $75 million grant which the company will match for a total of $150 million, the Energy Department said. Cummins plans to convert about 360,000 square feet of its existing Columbus Engine Plant for the manufacture of zero-emissions components and electric powertrain systems.
Cummins expects to add about 250 new full-time jobs at the facility as a result of the project, the Energy Department said.
Stellantis is also set to receive a separate grant of nearly $335 million to convert an idled assembly plant in Illinois to assemble electric vehicles.
The grants cover a broad range of the automotive supply chain, including parts for electric motorcycles and school buses, hybrid powertrains, heavy-duty commercial truck batteries and electric SUVs.
Other companies slated for awards include Blue Bird Body Co., which will receive nearly $80 million to convert a Georgia site previously used to make diesel-powered motor homes to produce electric school buses.
General Motors will receive $500 million to convert an assembly plant in Lansing, Michigan to produce EVs. GM production lines will further support and benefit from ongoing investments in a U.S. battery supply chain, accelerating the commercialization of advanced, affordable EVs, the White House said.
Harley-Davidson will receive $89 million to expand a facility in York, Pennsylvania, to make electric motorcycles, and Volvo Group will receive $208 million to upgrade three manufacturing facilities that supply and build Mack and Volvo-branded heavy-duty trucks. The plants are located in Macungie, Pennsylvania; Dublin, Virginia; and Hagerstown, Maryland.
“Building a clean energy economy can and should be a win-win for union autoworkers and automakers,’’ President Joe Biden said in a statement. “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.’’
The grants, paid for by the landmark 2022 climate law, will help deliver on his commitment to ensure the future of the auto industry is made in America by American union workers, Biden said.
“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,’’ the Democratic president said.
The grant announcement comes as Biden rejects calls to step aside after a disastrous debate performance last month. Biden, 81, has acknowledged his poor performance but has brushed it off as a “bad night,’’ even as many congressional Democrats, including former House Speaker Nancy Pelosi, have declined to give him a full vote of confidence.
Awards are subject to negotiations to ensure that commitments to workers and communities are met, officials said. The Energy Department also will complete environmental reviews before money is awarded later this year.
Transportation accounts for the single largest source of U.S. greenhouse gas pollution and Biden has made electric vehicles a key part of his climate agenda.