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Last week, the Biden administration announced $1.7 billion of awards from the Inflation Reduction Act (IRA) to convert eleven shuttered or at-risk auto manufacturing and assembly facilities into electric vehicle (EV) and EV components manufacturing sites. The facilities are in eight states: Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia. The funding was distributed through the Domestic Manufacturing Auto Conversion Grants program.
This funding is from the Domestic Manufacturing Conversion Grant Program, which promotes the conversion of existing facilities to EV manufacturing facilities production by offering cost-shared grants. According to Energy Secretary Jennifer Granholm, the grants target facilities deemed “at-risk.” Granholm told E&E News that the policy prioritizes the “refurbishment and retooling of manufacturing facilities that have recently ceased operation or will cease operation in the near future.”
Below is a summary of each selected project.
American Autoparts, Inc (Mobis North America, LLC), $33 million: Mobis, a subsidiary of the Korean automaker, Hyundai, will receive nearly $33 million to retool two plants in Toledo, Ohio. One factory will receive funding to build chassis for plug-in hybrid electric vehicles (PHEVs), and the other factory will construct a new battery system assembly line for PHEV SUVs, PHEV light trucks, and PHEV minivans.
Blue Bird Body Company, $80 million: Blue Bird will receive nearly $80 million to transform an internal combustion engine (ICE) manufacturing facility in Fort Valley, Georgia, into a zero-emission electric school bus production site. This new facility is expected to create over 400 new, high-paying, and highly skilled jobs.
Cummins Electrified Power NA, Inc., $75 million: Cummins will invest $75 million to transform 360,000square feet of the Columbus Engine Plant in Columbus, Indiana, into a facility for manufacturing zero-emissions components and electric powertrain systems.
Fiat-Chrysler Automotive US, LLC: $585 million: Fiat-Chrysler will receive $335 million to convert an assembly plant in Belvidere, Illinois, and $250 million for a plant in Kokomo, Indiana. These projects will retain and upskill nearly 2,000 United Auto Workers (UAW) unions and expand local EV manufacturing jobs in the Midwest.
General Motors, $500 million: With a $500 million grant, General Motors (GM) proposes to transform its Lansing Grand River Assembly plant in Lansing, Michigan from producing gas-powered vehicles to producing EVs. This investment is slated to retain over 650 jobs and create 50 new jobs.
Harley Davidson, $89 million: Harley Davidson will receive nearly $89 million to expand its facility in York, Pennsylvania for EV motorcycle manufacturing. This project will retain over 1,300 union workers and hire over 125 workers.
Volvo Technology of America, LLC., $208 million: Volvo will receive $208 million to re-equip three Volvo manufacturing facilities in Pennsylvania, Virginia, and Maryland to produce battery-electric and fuel-cell versions of its existing gas-powered Volvo and Mack trucks. Nearly 8,000 existing jobs will be retained, and 295 new jobs will be created with this funding.
ZF North America, Inc, $158 million: ZF Axle Drives Marysville, a subsidiary of ZF North America, will receive $158 million to convert part of its Marysville, Michigan, facility from production of ICE components to EV components. This project will retain 536 jobs, including 387 UAW union positions.
More information on the grants can be found here.
