Biden administration awards $1.7 billion to retool facilities for EV production

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As part of 2022's Inflation Reduction Act, the Biden administration has awarded nearly $2 billion in grants to 11 American vehicle manufacturers in eight states for the purpose of upgrading facilities for EV production, and to retain and create new jobs.
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The Biden administration and the Department of Energy (DOE) announced Thursday a $1.7 billion investment to help support the conversion of 11 shuttered or at-risk vehicle manufacturing plants in eight states for electric vehicle production and necessary components. 

The states include Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia. 

The grants, paid for as part of the Inflation Reduction Act, cover a range of the vehicle supply chain, such as parts for electric motorcycles, SUVs, school buses, hybrid powertrains, and heavy-duty commercial truck batteries.

“There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry,” said U.S. Secretary of Energy Jennifer M. Granholm. “Even as our competitors invest heavily in electric vehicles, these grants ensure that our automotive industry stays competitive—and does it in the communities and with the workforce that have supported the auto industry for generations.”  

Among the nine selected manufacturers is Columbus, Indiana-based Cummins. It's set to receive a $75 million grant which Cummins will match for a total of $150 million. The company will convert approximately 360,000 square feet of its existing Columbus Engine Plant for the production of zero-emissions components and electric powertrain systems. An estimated 250 new full-time jobs will be created.

Fort Valley, Georgia-based Blue Bird Body Company will receive about $80 million to convert a prior internal combustion engine vehicle manufacturing location to a new 600,000 sq. ft. facility for the production of zero-emission school buses. 

The Volvo Group, including its Mack and Volvo heavy-duty truck brands, is slated to get just over $208 million to upgrade three plants located in Macungie, Pennsylvania, Dublin, Virginia, and Hagerstown, Maryland. These facility will be updated to boost production capacity of battery-electric and fuel cell trucks, among them two Class 8 models and a complete Class 8 BEV/FCEV truck model line. The funding will help sustain 7,900 existing union jobs and create an additional 295.

[Related: Why aren't more carriers using heavy-duty electric trucks?]

ZF North America will get about $158 million to fund the partial conversion of its ZF Axle Drives Marysville, Maryland plant from internal combustion engine driveline component production to EV componentry for light-, medium-, and heavy-duty vehicles. The company adds it will retain 536 jobs and could add more by decade's end. 

Additional manufacturers receiving these federal government grants include General Motors ($500 million), Stellantis ($335 million), and Harley-Davidson ($89 million).  

Jay Traugott has covered the automotive and transportation sector for over a decade and now serves as Senior Editor for Clean Trucking. He holds a drifting license and has driven on some of the world's best race tracks, including the Nurburgring and Spa. He lives near Boulder, Colorado, and spends his free time snowboarding, climbing, and hiking. He can be reached at [email protected].

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Hydrogen Fuel Cell & BEV Survey
The following survey was sent as a link in an email cover message in February 2023 to the newsletter lists for Overdrive and CCJ. After approximately two weeks, a total of 176 owner-operators under their own authority, 113 owner-operators leased or assigned to a carrier and 82 fleet executives and 36 fleet employees from fleets with 10 or more power units had completed and submitted the questionnaire for a total of 407 qualified responses. Cross-tabulations based on respondent type are provided for each question when applicable.
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