The Biden administration intends to grant General Motors Company (NYSE:GM) and Chrysler-parent Stellantis N.V. (NYSE:STLA) nearly $1.1 billion in funding to transform their current facilities into manufacturing hubs for electric vehicles and related components.

The Department of Energy (DOE) has unveiled plans to allocate $1.7 billion in grants aimed at supporting the transformation of 11 vulnerable plants across eight states, reported Reuters.

This initiative aims to enable these facilities to produce 1 million electric vehicles annually, safeguarding 15,000 current jobs while generating 3,000 new positions.

Energy Secretary Jennifer Granholm informed reporters the awards were a "hallmark of the Biden administration's industrial strategy" and would "modernize historical auto manufacturing facilities," Reuters added.

Also Read: Stellantis Recalls More Than 341K Vehicles Over Concerns Of Airbag Non-Deployment, Incorrect Pressure Information On Tire Placard

The grants are allocated to plants located in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia — several of which hold strategic importance in the upcoming November presidential election.

General Motors is set to receive $500 million to convert its Lansing Grand River Assembly Plant in Michigan into an EV manufacturing facility at a later, unspecified date.

The DOE is preparing to grant Stellantis $334.8 million to repurpose the closed Belvidere Assembly plant for electric vehicle (EV) production and another $250 million to convert its Indiana Transmission Plant in Kokomo into a facility for manufacturing EV components.

Stellantis has acknowledged these anticipated awards as a significant move towards broadening its lineup of electrified vehicles.

Additionally, Hyundai Mobis, which runs a Stellantis supplier in Ohio, is set to receive $32 million to manufacture components for plug-in hybrids and battery packs.

Additional grants include $89 million allocated to Harley-Davidson, Inc. (NYSE:HOG) to expand its York, Pennsylvania plant for manufacturing electric motorcycles.

Cummins Inc. (NYSE:CMI) is slated to receive $75 million to transform a portion of an existing Indiana plant to manufacture zero-emission components and electric powertrain systems.

The DOE also plans to provide $208 million to the Volvo Group to upgrade plants in Maryland, Virginia, and Pennsylvania, enhancing their capacity to produce electric vehicles. ZF North America will receive $157 million to convert part of its Marysville, Michigan, plant for the production of EV components.

Price Action: GM shares are trading higher by 0.19% to $46.62 premarket at last check Thursday, while STLA shares are trading lower by 0.70% to $19.96.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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