USA announces $1.7B to convert auto manufacturing sites to electric vehicle production
July 15, 2024
As part of the US government’s Investing in America agenda, the Department of Energy (DOE) has announced $1.7 billion to support the conversion of eleven shuttered or at-risk auto manufacturing and assembly facilities to manufacture electric vehicles. The funding will support sites in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia, with the investments helping create and retain thousands of jobs and support the American auto communities that have historically driven the domestic economy.
“There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry,” stated US Secretary of Energy Jennifer M Granholm. “Even as our competitors invest heavily in electric vehicles, these grants 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.”
“President Biden set out to build a clean energy economy that benefits everyone,” said John Podesta, Senior Advisor to the President for International Climate Policy. “Today’s awards from the Department of Energy help bring that vision to life by investing in the future of the auto industry, creating thousands of good-paying union jobs, and tackling the existential threat of climate change by cutting pollution from the transportation sector.”
The selectees of Domestic Manufacturing Auto Conversion Grants programme will negotiate for awards to enable them to manufacture 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 SUVs.
This announcement complements the $177 billion in private sector investment in EV and battery manufacturing spurred to date by the Investing in America agenda. The programme is also intended to support the administration’s efforts to strengthen domestic supply chains, support American workers, and bolster America’s global position in manufacturing.
The award selections are subject to negotiations to ensure that commitments to workers and communities are met. DOE will also complete environmental reviews to ensure that the awards are consistent with the Administration’s commitments to clean, environmentally responsible manufacturing, and include appropriate mitigation as needed. If awarded, the selected projects would collectively create over 2,900 new high-quality jobs and help ensure over 15,000 highly skilled workers are retained across all eleven facilities.
The Domestic Auto Manufacturing Conversion Grants programme, funded by the Inflation Reduction Act, invests in the domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles. This programme aims to expand manufacturing of light-, medium-, and heavy-duty electrified vehicles and components and support commercial facilities including those for vehicle assembly, component assembly, and related vehicle part manufacturing.
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