The Biden Administration has announced nearly $2 billion in funding to further the manufacturing of electric vehicles.
The administration will be donating $1.7 billion from the Inflation Reduction Act to unionized automotive companies to help influence EV manufacturing.
The funding will support the conversion of 11 shuttered or at-risk auto manufacturing and assembly facilities across eight states: Michigan, Ohio, Pennsylvania, Georgia, 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 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."
According to the U.S. Department of Energy, the grants will enable automakers to manufacture vehicles and products covering 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 vehicles.
The award selections are subject to negotiations to ensure that commitments to workers and communities are met. If awarded, the selected projects would collectively create over 2,900 new high-quality jobs and help ensure over 15,000 highly skilled union workers are retained across all eleven facilities.
Companies selected for awards include:
• General Motors - Lansing, MI: $500 million
GM proposes to convert its Lansing Grand River Assembly Plant from producing traditional internal combustion engine vehicles to producing EVs. the project is estimated to retain over 650 jobs while creating 50 new jobs.
• Fiat Chrysler - Belvidere, IL: $334.7 million
FCA will convert the idled Belvidere Assembly Plant to a Vehicle Assembly Complex for Electrification, transitioning its operations from producing traditional vehicles to EVs. The project is expected to restore nearly 1450 UAW jobs.
• Fiat Chrysler - Kokomo, IN: $250 million
FCA proposes to convert the Indiana Transmission Plant to initiate production of Electric Drive Modules to increase e-motor capabilities for incorporation into EVs. The project is anticipated to result in the retention and upskilling of 585 employees, all of which are UAW employees.
• Volvo - Macungie, PA; Dublin, VA; Hagerstown, MD: $208.2 million
The proposed project will upgrade/re-equip three Volvo Group manufacturing facilities that supply and build all Mack and Volvo branded heavy-duty trucks, increasing the production capacity potential of battery electric vehicles and fuel cell electric vehicles. The project is expected to create 295 new jobs.
• ZF Axle Drives - Marysville, MI: $157.7 million
A subsidiary of ZF North America, ZF Axle Drives plans to convert a portion of its current facility from internal combustion engine driveline component production to EV components. Through this project, ZF intends to retain the 536 current jobs onsite.
• Harley Davidson - York, PA: $89 million
Harley-Davidson will expand its facility in York, Pennsylvania for EV motorcycle manufacturing by incorporating new paint and assembly equipment, retaining and re-training its over 1,300 union workforce and hiring more than 125 workers.
• Blue Bird Body Company - Fort Valley, GA: $79.7 million
Blue Bird intends to convert a prior vehicle manufacturing location to a new facility for the production of zero-emission electric school buses while focusing on the education and training of its current and future workforce. The company projects adding more than 400 new, high-paying and highly skilled jobs.
• Cummins Electrified Power - Columbus, IN: $75 million
Through Accelera by Cummins, its zero-emissions business segment, the company plans to convert part of an existing manufacturing facility at the Columbus Engine Plant to house manufacturing for zero-emissions components and electric powertrain systems. Cummins anticipates adding 250 new full-time jobs, with opportunities for the plant's existing workforce to transition to these positions over time.
• American Autoparts - Toledo, OH: $32.6 million
A subsidiary of Hyundai Mobis, American Autoparts has a two-phase project. The first involves converting its existing chassis assembly plant at the Stellantis Toledo Assembly Complex to support the manufacturing of a new light plug-in hybrid electric truck, retaining 354 UAW union jobs and creating an estimated 38 new union labor jobs. The second phase involves constructing a new battery system assembly plant at the new Toledo Trade Centre Industrial Park, creating 185 new jobs.