The U.S. Department of Energy (DOE) has announced a $1.7 billion grant giveaway to automakers and original equipment manufacturers (OEMs) to support the conversion of shuttered or at-risk manufacturing and assembly facilities. The grant aims at electric vehicle manufacture and supply chains across eight U.S. states.
The Domestic Manufacturing Auto Conversion Grants program includes money for companies building electric cars, trucks, school buses, motorcycles, etc. Including hybrid powertrains and heavy-duty commercial vehicles. The grants include:
- $584,763,049 to Fiat-Chrysler Automotive (Stellantis) to convert its Belvidere Assembly Plant and its Indiana Transmission Plant into electrification facilities. The Belvidere plant would become the Vehicle Assembly Complex for Electrification, transitioning the plant’s operations from internal combustion engine production to assembling electric vehicles. The Indiana plant would add Electric Drive Modules to its production lines and phase out internal combustion engine parts from its production.
- $500,000,000 to General Motors to convert its Lansing Grand River Assembly Plant in Michigan from its current internal combustion engine production to electric vehicle production. The Lansing plant was first built in 1999 and began operations in 2001 and is one of GM’s newest facilities.
- $208,224,054 to Volvo Group to upgrade or re-equip three Volvo Group manufacturing facilities that build Mack and Volvo heavy-duty trucks. The plants include the Macungie, Pennsylvania, Dublin, Virginia, and Hagerstown, Maryland facilities. The upgrades would increase production capacity potential for both battery-electric and hydrogen fuel cell vehicles.
- $157,713,011 to ZF North America to fund a project converting a portion of its Marysville, Michigan plant from internal combustion driveline component production to electric vehicle components.
- $89,000,000 to Harley-Davidson for expansion of its York, Pennsylvania plant to add production of electric motorcycles. Including new paint and assembly equipment.
- $79,728,146 to Blue Bird Body to convert a prior vehicle manufacturing location into a new 600,000 square foot facility for manufacturing zero-emissions school buses.
- $75,000,000 to Cummins to convert part of an existing manufacturing facility in Columbus, Indiana (which currently builds internal combustion engines) into an in-house manufacturing line for zero-emissions components and powertrain systems.
- $32,617,879 to American Autoparts (part of Hyundai) to convert its existing internal combustion engine chassis assembly plant in Toledo, Ohio into a plug-in hybrid and internal combustion assembly plant and to construct a new battery system assembly plant in the same city.
The Domestic Auto Manufacturing Conversion Grants program, funded by the Inflation Reduction Act, invests in the domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles. This program aims to expand manufacturing of light-, medium-, and heavy-duty electrified vehicles and components and support commercial facilities including those for vehicle assembly, component assembly, and related vehicle part manufacturing.
Selection for award negotiations is not a commitment by DOE to issue an award or provide funding. Before funding is issued, DOE and the applicants will undergo a negotiation process, and DOE may cancel negotiations and rescind the selection for any reason during that time.
