The Biden administration has announced the allocation of nearly $2 billion in grants to support the expansion and revitalization of electric vehicle manufacturing and assembly sites in eight states across the U.S. These grants, totaling $1.7 billion, aim to create and retain thousands of union jobs while bolstering auto-based communities that have historically been vital to the American economy.
The states set to benefit from these grants include Michigan, Pennsylvania, Georgia, Ohio, Illinois, Indiana, Maryland, and Virginia. The funding will cover various aspects of the automotive supply chain, encompassing parts for electric motorcycles, school buses, hybrid powertrains, heavy-duty commercial truck batteries, and electric SUVs.
President Joe Biden emphasized the importance of building a clean energy economy that benefits both union autoworkers and automakers. He highlighted that this investment will generate good-paying union manufacturing jobs and help auto companies retool and rehire in existing factories and communities.
The grants, financed by the 2022 climate law, align with Biden's commitment to ensuring that the future of the auto industry is American-made by American union workers. Energy Secretary Jennifer Granholm underscored the significance of supporting the automotive industry to remain competitive in the face of global challenges, particularly from countries like China that are heavily investing in electric vehicles.
The grants are part of a broader effort, complementing over $177 billion in private sector investments in EV and battery manufacturing since Biden assumed office. The selected projects are projected to create over 2,900 jobs and retain approximately 15,000 union workers across 11 facilities, with a focus on supporting communities that have a strong automotive heritage.
Transportation is a major contributor to U.S. greenhouse gas emissions, and Biden views electric vehicles as a crucial component of his climate agenda. The grants will facilitate the transition to cleaner transit options, such as electric school buses and motorcycles, offering cost savings on fuel and maintenance over the lifetime of the vehicles.
Several companies are set to receive grants, including Blue Bird Body Co., Fiat Chrysler, General Motors, Harley-Davidson, and Volvo Group, to support the production of electric vehicles and related components. These investments are expected to drive innovation, create jobs, and advance the adoption of affordable electric vehicles in the U.S.
