Automakers to Receive $1.7B in Federal Funds to Convert to Electric Vehicle Manufacturing
The White House is dolling out $1.7 billion to Stellantis, General Motors, and Volvo to convert vacant or underperforming manufacturing plants to produce electric vehicles instead, reports Bloomberg.
The funds will be granted by the Energy Department and will go to facilities located across eight states. The initiative is part of a program within the Inflation Reduction Act dedicated to bolstering domestic production of EVs, hybrids, and other vehicles.
Stellantis will be receiving almost $585 million to transition a disused Fiat Chrysler plant in Illinois to manufacture EVs, and will also begin making electric drives at its current transmission plant in Indiana.
Another $500 million will be allocated for a GM assembly plant in Lansing, Michigan, to manufacture EVs instead of internal combustion engine vehicles, and Volvo is being given $208 million to begin producing electric trucks at three existing facilities.
The funds have not yet been made final, but under the current proposal, Energy Secretary Jennifer Granholm said it’s expected to save approximately 15,000 jobs and create almost 3,000 more.
