The United States Department of Energy (DOE) is granting 11 auto factories in eight states $1.7 billion for electric vehicle (EV) production technology.The news was announced in July, adding jobs to the heartland of American manufacturing. Some plants will reopen, while others will get upgrades to existing technologies.
The Domestic Manufacturing Auto Conversion Grants program will select several plants that need upgrading to build parts for EVs, including buses, motorcycles, heavy-duty truck batteries, and SUVs. All funds are generated by the Inflation Reduction Act (IRA).
Top brands like Jeep, Blue Bird, and Harley-Davidson will receive funds for EV production.
A Stellantis factory in Illinois will reopen after closing in 2017 to produce electric Jeeps. A Harley-Davidson factory in Pennsylvania will get $89 million to expand and make more electric motorcycles. A General Motors plant in Michigan is getting $500 million to convert to an EV facility.
Photo Courtesy Stellantis
“We’re going to save hundreds of jobs. We’re going to create even more at this plant,” Jennifer Granholm, secretary of energy, said at a Lansing press event. “We’re going to support thousands of shop owners and restaurant employees and other folks in the Lansing communities whose livelihoods depend on a robust auto industry. On the pulse of Michigan’s auto economy.”
The revitalization of the American auto industry and the switch to electric cars go hand in hand. The federal government wants to establish a domestic EV supply chain for components, batteries, and critical minerals to reduce reliance on imports. Reopening and renovating these facilities will create economic opportunities and continue the U.S. auto industry toward a greener future.
Granholm told reporters these 11 factories will preserve around 15,000 jobs and create 3,000 new ones, including union positions.
She also believes this move will allow the country to compete with other nations. Demand for EVs has slowed in 2024, but experts anticipate interest will reignite as prices continue to fall.
Photo Courtesy Stellanits
Increased competition has been a concern for America’s legacy automakers. China’s BYD launched an EV under the $10,000 threshold. The company outsold Tesla in global sales and established a presence in Europe and Latin America.
In building its brand, BYD was a major advertising partner for the UEFA Euro 2024 and the CONMEBOL Copa America 2024, the two biggest international soccer tournaments outside of the World Cup. Ironically, Copa America, South America’s event, was held in the U.S., and the BYD company logo was prominently displayed on the digital advertising boards.
Revitalizing domestic factories will lower domestic EV costs as a home supply chain strengthens. The DOE grant money can uplift the communities in which these facilities reside, providing higher wages and a new spirit to restore the auto industry to its heyday. Despite disagreements on how EVs are rolled out across the U.S., there is agreement that EV technology can benefit America’s future. “So the bottom line is: This [EV technology] is coming, whether we like it or not,” U.S. Senator Lindsey Graham of South Carolina shared during a congressional hearing. “And I think there’s an upside to it, to be honest with you.”
