The US government announced on Thursday a fresh $1.7 billion in funding to revive closed-down or save at-risk automotive manufacturing and assembly facilities in the country. However, the program expects these factories to start producing electric and hybrid vehicles.
Biden offers $1.7B to revive auto manufacturing in 8 states
According to the press release, US President Joe Biden announced a “historic investment” to further strengthen the local electric vehicle industry on July 11, 2024.
The Department of Energy will allocate $1.7 billion in grant awards to help automakers save 11 “shuttered or at-risk” automotive manufacturing and assembly factories. In return, these factories must embrace electric vehicle production upon receiving the funding.
The program targets 11 factories across 8 US states that have either recently shut down or are at risk of closure due to upcoming changes in automakers’ strategies.
Funding details
As per the report, the 1.7 billion funding is under the “Domestic Conversion Grant Program” of the Inflation Reduction Act.
It primarily aims to encourage automakers to start electric vehicle production amid the global shift to clean energy vehicles.
Presented below are the funding details:
| SELECTEE | TITLE | LOCATION – CITY | LOCATION – STATE | |
| 1 | American Autoparts, Inc (Mobis North America, LLC) | MNA-OH PHEV Conversion and MUSe Battery System Assembly Plant Construction | Toledo | OH |
| 2 | Blue Bird Body Company | Blue Bird Bus Electric Vehicle Manufacturing Conversion Project | Fort Valley | GA |
| 3 | Cummins Electrified Power NA, Inc. | Accelerating the shift to zero: Charting a path for workforce transition and community improvement toward a zero-emissions economy | Columbus | IN |
| 4 | Fiat-Chrysler Automotive US, LLC | FCA US Conversion of Belvidere Assembly Plant to a Vehicle Assembly Complex for Electrification | Belvidere | IL |
| 5 | Fiat-Chrysler Automotive US, LLC | FCA US Conversion of Indiana Transmission Plant for Electric Drive Modules | Kokomo | IN |
| 6 | General Motors LLC | EV conversion | Lansing | MI |
| 7 | Harley Davidson, Inc. | Electric Vehicle (“EV”) Conversion in York, Pennsylvania | York | PA |
| 8 | Volvo Technology of America, LLC | A Manufacturing Conversion of Commercial Trucks from Fossil Fuel to Zero Emissions for Volvo Group’s Mack and Volvo Brands. | Macungie Dublin Hagerstown | PA VA MD |
| 9 | ZF North America, Inc. | ZF North America E-Mobility Conversion | Marysville | MI |
Expected outcome
It must be noted that the funding is still contingent on negotiations with the US government, which aims to guarantee that these companies fulfill certain goals before handing out the grant money.
“The selectees will negotiate for awards to enable them to manufacture vehicles and 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 vehicles.”
Press release
The Biden administration expects these programs to “create and retain” tens of thousands of jobs.
Specifically, it will generate about 2,900 new jobs and retain 15,000 union jobs that would have been lost if these factories shut down.
Moreover, it will substantially aid the US government in fulfilling its “Justice40 Initiative,” which allocates 40% of climate spending towards disadvantaged communities nationwide.
