According to Reuters, on October 22, U.S. Energy Secretary Jennifer Granholm stated that the U.S. Department of Energy is finalizing a $1.7 billion grant to fund the transformation of factories to produce electric vehicles and their parts "as soon as possible."
In July of this year, the U.S. Department of Energy announced plans to grant $500 million to General Motors to transform its Lansing Grand River assembly plant in Michigan into an electric vehicle factory, though a specific date is yet to be determined. Additionally, $334.8 million is slated for Stellantis to convert its closed Belvidere assembly plant into an electric vehicle production facility, and another $250 million will go toward transforming Stellantis' transmission plant in Kokomo, Indiana, to produce electric vehicle parts.
Jennifer Granholm remarked, "We are signing commitment contracts with all selected candidates as quickly as possible, and there are still a few months left to ensure that these tasks are completed."
Granholm emphasized that President Joe Biden is deeply committed to ensuring a robust industrial strategy for the next generation of vehicle production. She highlighted how the Biden administration is helping automakers "reduce costs, ensure supply chain security, foster innovative technology, and help automakers remain globally competitive." She added, "We are not going to a gunfight with a knife. We are sending a fleet."
Granholm also noted the crucial role the U.S. government plays in advancing the electrification of American automakers. "American automakers are fighting for dominance in the automotive industry, aiming not only to keep up with the pace but to lead the way in the electric vehicle transformation."
Previously, the United Auto Workers (UAW) union had threatened to strike due to Stellantis postponing its investment plan for the Belvidere plant, prompting Stellantis to file a lawsuit to prevent the closure. When asked about the investment delay, Granholm said, "This involves a series of complex considerations, and we are currently negotiating."
Meanwhile, some U.S. Democrats have criticized Ohio Senator JD Vance, who is running as Donald Trump's vice-presidential candidate, for his reluctance to maintain the commitment to provide General Motors with the $500 million grant. In response, a GM spokesperson said the grant was "still in the negotiation stage" and declined to speculate on the outcome if the grant is not approved.
Stellantis did not immediately comment on the report. Following the report's release, GM's stock price rose 9.7%, while Stellantis' stock saw a 0.5% increase.
Earlier this month, UAW Chairman Shawn Fain warned that if Republican presidential candidate Donald Trump wins the November 5 election and withdraws electric vehicle investments, hundreds of thousands of American jobs could be at risk. Trump has also stated that electric vehicle production threatens American jobs.