Biden Grants $1.7B for EV Plants in Michigan, Georgia, Ohio, and More

The Biden administration will grant nearly $2 billion to expand electric vehicle (EV) manufacturing and assembly sites across eight states, including Michigan, Pennsylvania, and Georgia. This investment, aimed at rejuvenating the U.S. automotive industry, comes from the 2022 climate law and is part of a broader strategy to promote clean energy and create union jobs.

The Department of Energy will distribute $1.7 billion in grants to help create or retain thousands of union jobs in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia, covering a wide range of the automotive supply chain. This includes manufacturing parts for electric motorcycles, school buses, hybrid powertrains, heavy-duty commercial truck batteries, and electric SUVs.

“Building a clean energy economy can and should be a win-win for union autoworkers and automakers,'' President 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.''

General Motors (GM) will receive a $500 million grant to convert an assembly plant in Lansing, Michigan to produce EVs. This is part of GM's larger commitment of over $12 billion in investments in North American EV manufacturing and supply chain since 2020. “This grant underscores our commitment to U.S. leadership in manufacturing and innovation,” said Camilo Ballesty, GM vice president of North America Manufacturing and Labor Relations.

Stellantis, known for brands like Fiat, Chrysler, Jeep, and Dodge, will receive a total of $585 million, including $335 million to convert an idled assembly plant in Illinois and $250 million for an Indiana transmission plant to make electric drive modules for EVs. Stellantis also plans to build a $3.2 billion battery plant in Illinois.

Harley-Davidson will receive $89 million to expand its York, Pennsylvania facility to produce electric motorcycles, while Volvo Group will get $208 million to upgrade three facilities for manufacturing heavy-duty trucks under the Mack and Volvo brands. These plants are located in Macungie, Pennsylvania; Dublin, Virginia; and Hagerstown, Maryland.

“Even as competitors like China invest heavily in electric vehicles, these grants will 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,” added U.S. Secretary of Energy Jennifer Granholm.

The selected projects are expected to create over 2,900 new jobs and help retain approximately 15,000 union workers across all 11 facilities.

The grants are subject to negotiations to ensure commitments to workers and communities are met. The Department of Energy will also complete environmental reviews before funds are awarded later this year.