Biden administration will allocate over $1 billion to the electric vehicle projects of General Motors (GM) and Stellantis. This financial investment aims to enhance the production capabilities of these leading automakers, propelling them forward in a rapidly evolving industry.
Key Investments and Impact
The funding includes $500 million for GM’s Lansing Grand River Assembly plant in Michigan, $334.8 million for Stellantis’ Belvidere Assembly facility in Illinois, and $250 million for Stellantis’ planned EV drive module plant in Indiana. Part of a broader $1.7 billion federal commitment, these projects span eight states and are expected to generate over 2,900 new jobs while retaining 15,000 highly skilled union workers.
Broader Scope and Legislative Backing
The US Department of Energy (DoE) emphasized that these investments, facilitated through the Domestic Manufacturing Auto Conversion Grants under the Inflation Reduction Act, aim to assist automakers in shifting from combustion-powered vehicles to electric ones. This initiative supports the development of EVs, hybrids, plug-in hybrids, and hydrogen fuel cell vehicles.
Statements from Key Officials
Energy Secretary Jennifer Granholm stressed the competitive edge these grants provide to US automakers. “There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry. 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,” she noted.
John Podesta, Senior Advisor to the President for International Climate Policy, highlighted the broader vision. “President Biden set out to build a clean energy economy that benefits everyone. 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,” Podesta stated.
President Joe Biden expressed his support for the DoE’s grants, underscoring the dual benefits for workers and the industry. “Building a clean energy economy can and should be a win-win for union autoworkers and automakers,” Biden remarked.
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