The Biden administration plans to award $1.7B in grants to boost production of electric vehicles and components across eight U.S. states.
The U.S. Department of Energy announced $1.7B in planned grants that will support the conversion of 11 “at risk” facilities to enable the production of 1 million EVs annually.
The awards are for facilities in Ohio, Illinois, Indiana, Maryland, Virginia, Michigan, Pennsylvania and Georgia, many of which will be crucial in the November presidential election.
“Building a clean energy economy can and should be a win-win for union autoworkers and automakers,” President Joe Biden said in a statement on Thursday, adding that “the 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.”
Companies slated for awards include: General Motors (NYSE:GM), which will receive $500M to convert an assembly plant in Lansing, Michigan to produce EVs; Chrysler-parent Stellantis (NYSE:STLA), which will receive around $585M to transform its Illinois and Indiana facilities; Blue Bird Body Co. (NASDAQ:BLBD), which will get around $80M to convert a Georgia plant to produce electric school buses; Harley-Davidson, $89M to expand a facility in York, Pennsylvania to make electric motorcycles; and Volvo Group (OTCPK:VLVLY), $208M to upgrade three manufacturing sites across Pennsylvania, Virginia and Maryland, among others.
The DOE will complete negotiations with companies on milestones and other requirements and complete environmental reviews before the awards are finalized.
If awards are completed as planned, the selected projects would generate over 2,900 jobs and help retain 15,000 existing jobs.
The grants complement $177B in private sector investment in EV and battery manufacturing since Biden took office, Energy Secretary Jennifer Granholm and other officials said.
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