DOE announces nearly $2B to convert facilities for electric vehicles

On Thursday, the U.S. Department of Energy (DOE) announced $1.7 billion in grants to help convert 11 shuttered or at-risk auto manufacturing and assembly facilities.

The facilities are across eight states – Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia – and will retool or retrofit 11 existing motor vehicle manufacturing facilities and will support their conversion to manufacturing electric vehicles and their supply chains. The investments, officials said, would create or retain thousands of union jobs and support American auto communities.

“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. “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.”

Part of the Domestic Manufacturing Auto Conversion Grants program, the funding goes to selectees who much negotiate for awards that 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. Award selections are subject to negotiations to ensure that commitments to workers and communities are met, officials said, and the DOE will also complete environmental reviews to make sure the awards are consistent with federal commitments to environmentally responsible manufacturing. If awarded, the projects would collectively create more than 2,900 new high-quality jobs and ensure more than 15,000 skilled workers are retained across the 11 facilities.

“Today’s announcement from the Department of Energy is a big win for the American people and demonstrates President Biden’s bold vision for how we are choosing to take on the climate crisis: with America’s workers leading the way,” Ali Zaidi, assistant to the president and National Climate Advisor said. “This ground-breaking program is central to catalyzing expansion of the industrial capacity to help us meet the President’s climate goals and allow tens of thousands of skilled American workers to participate in the great comeback story of American manufacturing.”

The grants include $32.6 million for American Autoparts, Inc (Mobis North America, LLC), $208 million for Volvo Technology of America, and $500 million for General Motors, LLC.

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