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The Biden administration intends to grant General Motors Company (NYSE:GM) and Chrysler-parent Stellantis N.V. (NYSE:STLA) nearly $1.1 billion in funding to transform their current facilities into manufacturing hubs for electric vehicles and related components.
The Department of Energy (DOE) has unveiled plans to allocate $1.7 billion in grants aimed at supporting the transformation of 11 vulnerable plants across eight states, reported Reuters.
This initiative aims to enable these facilities to produce 1 million electric vehicles annually, safeguarding 15,000 current jobs while generating 3,000 new positions.
Energy Secretary Jennifer Granholm informed reporters the awards were a “hallmark of the Biden administration’s industrial strategy” and would “modernize historical auto manufacturing facilities,” Reuters added.
The grants are allocated to plants located in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia — several of which hold strategic importance in the upcoming November presidential election.
General Motors is set to receive $500 million to convert its Lansing Grand River Assembly Plant in Michigan into an EV manufacturing facility at a later, unspecified date.
The DOE is preparing to grant Stellantis $334.8 million to repurpose the closed Belvidere Assembly plant for electric vehicle (EV) production and another $250 million to convert its Indiana Transmission Plant in Kokomo into a facility for manufacturing EV components.
Stellantis has acknowledged these anticipated awards as a significant move towards broadening its lineup of electrified vehicles.
Additionally, Hyundai Mobis, which runs a Stellantis supplier in Ohio, is set to receive $32 million to manufacture components for plug-in hybrids and battery packs.
Additional grants include $89 million allocated to Harley-Davidson, Inc. (NYSE:HOG) to expand its York, Pennsylvania plant for manufacturing electric motorcycles.
Cummins Inc. (NYSE:CMI) is slated to receive $75 million to transform a portion of an existing Indiana plant to manufacture zero-emission components and electric powertrain systems.
The DOE also plans to provide $208 million to the Volvo Group to upgrade plants in Maryland, Virginia, and Pennsylvania, enhancing their capacity to produce electric vehicles. ZF North America will receive $157 million to convert part of its Marysville, Michigan, plant for the production of EV components.
Price Action: GM shares are trading higher by 0.19% to $46.62 premarket at last check Thursday, while STLA shares are trading lower by 0.70% to $19.96.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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