Joe Biden to Dole out $2 Billion to Boost Electric Vehicles in Swing States

The Biden Energy Department on Thursday announced nearly $2 billion will be released to save at-risk or shuttered plants if they convert to electric vehicles across swing states such as Michigan or Pennsylvania.

The Biden administration is using $2 billion that came from the Inflation Reduction Act, which is commonly referred to as a climate change bill, as it attempts to combine manufacturing and climate change policies.

The funds will be used to help with conversions and retooling projects across eight states to make electric vehicles and other related parts.

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“This announcement is a hallmark of the Biden administration’s industrial strategy, which is a strategy to bring manufacturing and jobs back to America after years of offshoring,” Jennifer Granholm told reporters on Thursday.

However, some of the 11 facilities that will receive funding are in swing states as Pennsylvania, Michigan, Georgia, and Virginia. General Motors, Stellantis, Volvo, Harley-Davidson, and suppliers such as American Auto Parts will receive the funding, and Biden officials said it would ensure over 15,000 union workers keep their jobs, and create approximately 3,000 jobs.

Granholm said it would help enable over one million “electrified” light-duty vehicles annually, which includes hybrid and electric vehicles.

Autonews wrote:

The largest single grant is going to GM’s Lansing Grand River plant. It will be among several GM plants that can build EVs and components, including Factory Zero in Detroit, Orion Assembly in Michigan, Spring Hill Manufacturing in Tennessee, Fairfax Assembly in Kansas and Toledo Propulsion Systems in Ohio. GM committed to investing $1.25 billion at the Lansing plant on future EV production last fall as part of the automaker’s new contract with the UAW.

President Joe Biden also named Michigan and Georgia as two states that are “building a clean energy economy can and should be a win-win for union autoworkers and automakers.”

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The grants to the automakers also represent an attempt by the Biden administration to push the auto industry to continue producing and selling electric vehicles that they otherwise lose money on.

A Boston Consulting Group study found that U.S. automakers lose $6,000 on every $50,000 electric vehicle they sell in America.