GM Lansing Plant Secures $500 Million DOE Grant For EV Production Transition

General Motors (GM) Lansing Grand River Assembly plant is set to receive a massive boost toward electrification for electric vehicles (EVs). This is thanks to a $500 million grant from the U.S. Department of Energy (DOE) as well as additional investment from GM.

According to the DOE, this funding is part of a larger $1.7 billion initiative announced by the Biden administration to support the conversion of 11 auto production plants across eight states for EV production. Also, the DOE’s Domestic Manufacturing Conversion Grant program aims to strengthen U.S. production of efficient hybrid, plug-in hybrid, electric, and hydrogen fuel cell vehicles.

For GM’s Lansing plant, this investment will enable the plant to transition from producing luxury and performance vehicles including the Cadillac CT4 and CT5 to manufacturing EVs in the future.

Camilo Ballesty, GM’s vice president of North America Manufacturing and Labor Relations, expressed the company’s goal to U.S. production leadership stating, “GM’s investment and this Department of Energy grant underscore our commitment to U.S. leadership in manufacturing and innovation, making sure we’re competitive at home and abroad.”

Furthermore, the Lansing investment is part of GM’s broader strategy, which has seen over $12 billion invested in North American EV production and supply chain development since 2020. Moreover, GM is also inserting noteworthy investments in EV raw materials, processed materials, and component production across multiple states.

DOE Grants For Other Automakers

In addition to GM, Stellantis is also set to receive $584.8 million in grants for its facilities in Illinois and Indiana. This includes $334.8 million to convert its Belvidere Assembly plant for EV production and $250 million for the Indiana Transmission Plant in Kokomo to produce EV components.

Interestingly, other notable recipients include Harley-Davidson, Blue Bird, Cummins, Volvo Group, and ZF North America, with investments ranging from $32 million to $208 million for different EV-related projects.

Notably, the Biden administration projects these investments to enable the production of 1 million EVs annually, help retain 15,000 existing jobs, and create 3,000 new positions. The initiative also aligns with Biden administration’s Justice40 Initiative, which aims to ensure that 40% of the benefits from federal climate and clean energy investments flow to disadvantaged communities.

With this federal support, it also arrives at a significant moment for the U.S. EV market as it faces increasing global competition, particularly from Chinese EVs since the U.S. implemented 25% to 100% new tariffs. Correspondingly, this funding will also address concerns about job losses in traditional auto manufacturing regions as the industry transitions to EVs.

Read More: Biden Administration Confirms 100% Tariff on Chinese EVs

While negotiations for these awards proceed, the DOE will work on meeting the worker’s and communities’ goals including partnerships with local unions and support for worker training and benefits.

As the DOE conducts environmental reviews to align with the Biden administration’s clean production goals, the determining results from the impending grant will see the country’s EV industry further accelerate the transition to electric mobility.

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