Feds to give Belvidere Assembly Plant $335M to convert to electric

The U.S. Department of Energy on Thursday announced a $335 million grant to help Stellantis convert the Belvidere Assembly Plant to electric vehicle production.

It is among $1.7 billion in grants from the Inflation Reduction Act that President Joe Biden's administration is directing toward 11 shuttered or at-risk auto manufacturing and assembly facilities in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland and Virginia, according to a news release.

“There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry,” U.S. Secretary of Energy Jennifer M. Granholm said in the release. “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.”

The grant is subject to "negotiations to ensure that commitments to workers and communities are met," the release said. It also said that it is contingent on environmental reviews.

As part of its contract agreement to end the United Auto Workers strike, Stellantis agreed to invest nearly $5 billion to reopen and expand the Belvidere Assembly Plant with a new battery production facility and a $100 million parts distribution center.

Jeff Kolkey writes about government, economic development and other issues for the Rockford Register Star. He can be reached at (815) 987-1374, via email at jkolkey@rrstar.com and on X @jeffkolkey.