The White House’s budget director also plans to terminate nearly $8 billion in climate-related funding
by Brad Anderson
40 minutes ago
- The U.S. may revoke $1.1 billion in EV factory funding for automakers.
- GM received a $500 million grant from the Biden administration last year.
- Stellantis secured $585 million in grants to convert plants for EV production.
A deepening U.S. government shutdown has already forced hundreds of thousands of federal employees to either stay home or work without pay. Yet the impact could stretch beyond federal offices, potentially jeopardizing major grants awarded to Stellantis and General Motors.
Several high-profile grants approved under the Biden administration are reportedly being reviewed. Among them is a $500 million award to GM, intended to convert the Lansing Grand River Assembly site in Michigan for electric vehicle production.
That facility currently builds the Cadillac CT4 and CT5 sedans, though GM has yet to confirm which EVs will roll off its lines in the future.
Read: Jeep Cherokee Plant Reopening To Build EV Thanks To Govt Handout
Similarly, the Department of Energy could also pull a $335 million grant given to Stellantis for converting its closed Belvidere Assembly Plant in Illinois. That might not be the end of it, as another $250 million earmarked to transform Stellantis’s Indiana Transmission Plant into an EV component facility could be withdrawn as well.
These grants were originally announced by the Department of Energy in July of last year. Altogether, the department committed about $1.7 billion to help automakers expand or modernize their EV-related manufacturing.
Other Cuts
According to Automotive News, these Stellantis and GM projects represent only a fraction of the $12 billion in federal awards that could be scrapped due to the ongoing shutdown. The Department of Energy recently confirmed it plans to halt $7.56 billion in financing for hundreds of energy initiatives that officials believe won’t generate adequate returns for taxpayers.
White House budget director Russell Vought has also vowed to eliminate nearly $8 billion in climate-related funding spread across 16 Democratic-led states, signaling a broader rollback of clean-energy commitments.
Fading Incentives For EV Ambitions
It’s unclear how far investment plans have progressed at GM and Stellantis to overhaul their plants. However, now that the federal EV tax credit has been ditched, and because automakers will no longer face hefty fines for failing to meet emissions standards, they now have less incentive to develop and build new EVs.
Sources: Auto News
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