INDIANAPOLIS — Auto manufacturing and assembly facilities across the United States, including two from Indiana, are expected to receive multi-million dollar investments from the U.S. Department of Energy to manufacture electric vehicles and help the automotive supply chain.
According to a news release, the department will provide $1.7 billion in Domestic Manufacturing Auto Conversion Grants from the Inflation Reduction Act to support 11 auto manufacturing and assembly facilities to transition to electric vehicle manufacturers.
The 11 selectees, including Cummins in Columbus and the Fiat-Chrysler Automotive plant in Kokomo, will negotiate for awards to help them manufacture vehicles and products to help the automotive supply chain.
The release said Cummins in Columbus is expected to receive $75 million in federal grants, the largest federal grant ever awarded solely to Cummins. With the money, the company aims to decarbonize their operations, aiming to position itself as a “leader in electrified technologies.”
Along with the grant, Cummins will invest an additional $75 million in cost share to bring the total investment to $150 million. This will help convert the company’s Columbus Engine Plant to house manufacturing for zero-emissions components and electric powertrain systems.
Officials said this will add around 250 new full-time jobs and allow opportunities for the plant’s existing workforce to transition to these positions.
“This project stands as a testament to Cummins’ dedication to innovation, community welfare and environmental stewardship,” the release said, “making a significant contribution to the local community and the broader goals of sustainable transportation.”
The Fiat-Chrysler Automotive facility in Kokomo is expected to receive $249,999,999 in grants to convert its Indiana Transmission Plant to begin production of electric drive modules. The release said this will help increase e-motor capabilities for incorporation into electric vehicles.
This transition will include the retention, and upskilling of, 585 employees. Officials said the project will transition the plant’s manufacturing processes from internal combustion engine technologies to electrified alternatives.
“The project will support the local Kokomo community by providing new job training for employees and additional employment opportunities for diverse contractors,” the release said. “The commitments toward these goals include partnering with local organizations and investing in engagement strategies for the benefit of the local communities and (the company’s) employees.”
Other companies from around the United States who received grants include:
- American Autoparts in Toledo, Ohio – $32,617,879
- Blue Bird Body Company in Fort Valley, Georgia – $79,728,146
- Fiat-Chrysler Automotive U.S., LLC facility in Belvidere, Illinois – $334,763,050
- General Motors, LLC in Lansing, Michigan – $500,000,000
- Harley Davidson, Inc. in York, Pennsylvania
- Volvo Technology of America, LLC facilities in Macungie, Pennsylvania, Dublin, Virginia and Hagerstown, Maryland – $208,224,054
- ZF North America, Ind. in Marysville, Michigan – $157,714,011
In a statement from President Joe Biden about the grants, he said:
Building a clean energy economy can and should be a win-win for union autoworkers and automakers. This investment will create thousands of good-paying, union manufacturing jobs and retain even more—from Lansing, Michigan to Fort Valley, Georgia – by helping auto companies retool, reboot, and rehire in the same factories and communities. This delivers on my commitment to never give up on the manufacturing communities and workers that were left behind by my predecessor and are now making a comeback with the support of my policies, including the conversion grants my administration is announcing today. These grants will help ensure the future of the auto industry is made in America by American union workers. I’ll never stop fighting for the American auto industry and American autoworkers.
President Joe Biden