On July 11, the U.S. Department of Energy announced a $1.7 billion grant to support automobile manufacturers in maintaining operations at 11 troubled factories and initiating electric vehicle production there. The selected 11 factories in eight states have been designated as closed or at-risk facilities. Automakers have recently shut down these factories or are at risk of job losses due to changes in automaker plans.
The grants are part of the Domestic Conversion Grant Program, designed to transition these plants to electric vehicle production. The grant comes from the Inflation Reduction Act (IRA), passed in 2022 and funded with $400 billion.
The 11 facilities selected this time include factories and suppliers of Hyundai Motors, Bluebird, Cummins, Fiat Chrysler, General Motors, Harley, Volvo, and ZF. These factories are located in eight states: Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia.
Although the factories have been selected, the subsidies depend on negotiations to ensure the company meets specific targets before the grant is officially transferred.
The U.S. Department of Energy anticipates this project will create 2,900 new jobs. It noted that continuing to operate these facilities would maintain 15,000 jobs that would otherwise have been lost.
U.S. media outlets have pointed out that while this decision has positive aspects, it is also seen as being influenced by the upcoming presidential election.
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