The U.S. Department of Energy (DOE) has announced a donation of $1.7 billion to support the conversion of 11 shuttered or at-risk auto manufacturing and assembly facilities to manufacture electric vehicles (EVs).
Factories in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia will all reportedly receive this financing to begin the production of EVs as well as their supply chain.
Among the 11 beneficiaries includes a Jeep factory in Belvidere, a General Motors facility in Michigan and a Harley-Davidson plant in Pennsylvania.
The nearly $2 million investment aspires to create and retain thousands of union jobs and support American auto communities alongside the country’s national endeavour to complete its clean energy transition.
The U.S. Secretary of Energy, Jennifer M. Granholm, commented on the investment’s effect on America’s position in the automotive industry, stating that “even as competitors invest heavily in electric vehicles, these grants ensure that our [the U.S.] automotive industry stays competitive”.
Entitled the Domestic Manufacturing Auto Conversion Grants program, the funding aims to ensure that the U.S. continues to lead the world in auto manufacturing.
Capital awards will be delegated amongst in-need auto-factories to enable the manufacturing of 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.
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 union workers are retained across all eleven facilities.
Project descriptions and a full list of selections can be found here.
