Key Takeaways
- The White House on Thursday awarded $1.7 billion in grants to convert 11 plants at risk of closing into electric vehicle (EV) production facilities.
- GM and Stellantis received a combined roughly $1.1 billion for plants in Michigan, Illinois, and Indiana.
- The U.S. Department of Energy expects the grants to lead to the retention of 15,000 existing union jobs and the creation of nearly 3,000 new ones.
Automakers General Motors (GM) and Stellantis (STLA) are getting almost $1.1 billion in grants from the White House to convert “at-risk” plants into electric vehicle (EV)-related production facilities, the U.S. Department of Energy said Thursday.
The funding is part of $1.7 billion in total allocated for the conversion of 11 such plants across eight states, which the DOE expects to lead to the retention of 15,000 existing union jobs and the creation of nearly 3,000 new ones.
GM To Receive $500M, Stellantis $585M in Grants
The plans include $500 million to convert a General Motors facility in Michigan to EV production and nearly $585 million for Stellantis-owned Fiat-Chrysler plants in Illinois and Indiana. Other sites receiving awards are found in Ohio, Pennsylvania, Maryland, Georgia, and Virginia.
“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 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.”
President Joe Biden has made the production of EVs a core piece of his domestic energy policy. The Inflation Reduction Act, signed in 2022, incentivizes people to buy EVs with a tax credit of up to $7,500 from the government for consumers who meet income requirements.
GM shares rose 2.4% to $47.65 as of 11:20 a.m. ET Thursday, while Stellantis shares ticked 0.5% higher to $20.20.