Commodities

White House to Award $1.7 Billion to Retool Auto Plants for EVs

(Bloomberg) -- The Biden administration is awarding $1.7 billion to shore up at-risk or shuttered auto manufacturing and assembly facilities across eight states and convert them to support clean vehicle manufacturing. 

The funding is being made available for a program from the White House’s signature climate law, the Inflation Reduction Act, to support the domestic production of electric, hybrid, fuel cell and other clean vehicles. The Biden administration has set a goal of having 50% of all new vehicle sales be electric by 2030, as well as bringing back domestic auto parts production from foreign countries. 

The Energy Department funding to 11 projects includes nearly $585 million to Stellantis N.V. to convert an idled Fiat Chrysler Illinois assembly plant from gasoline powered vehicles to electric ones and another to convert a transmission plant in Indiana to make electric drives. General Motors Co. was awarded $500 million to convert its Lansing, Michigan, assembly plant from internal combustion engine vehicles to electric ones, and Volvo AB got $208 million to convert three facilities to make electric trucks.

“This announcement is a hallmark of the Biden’s administration’s industrial strategy, which is a strategy to bring manufacturing jobs back to America after years of offshoring,” Energy Secretary Jennifer Granholm said. The funding is expected to save some 15,000 jobs and create nearly 3,000 more, Granholm added. 

The awards are subject to negotiations and other reviews before becoming final. 

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