General Motors Co (NYSE:GM) shares are trading higher after the company's plan to invest at least $900 million to retool its Lansing, Michigan auto plant for electric vehicle (EV) production.
As conveyed by Energy Secretary Jennifer Granholm, this investment is part of a broader effort to transition GM's production capabilities towards electric vehicles.
At an event in Lansing, Granholm detailed GM's plans: the largest U.S. automaker will receive $500 million in government grants to aid in the conversion of its Lansing Grand River Assembly Plant to EV production.
GM will continue to produce the Cadillac CT4 and CT5 at this facility for the time being, reported Reuters.
In total, the Department of Energy (DOE) announced $1.7 billion in planned grants for 11 plants across eight states.
GM stated that it planned to invest at least $900 million in its application filed with the DOE, but the final figure could be higher.
Last year, the United Auto Workers union mentioned that GM had committed to investing $1.25 billion in the Lansing plant for a future EV during contract negotiations.
Also Read: General Motors To Retire 50MMT Of Greenhouse Gas Credits
GM has outlined plans to convert several internal combustion engine plants to EV production, including two other Michigan plants and factories in Tennessee, Ohio, and Kansas.
This initiative aligns with GM's goal to end the sale of gas-powered vehicles by 2035. Additionally, in January 2022, GM announced a $2.6 billion partnership with LG Energy Solution to build a battery cell manufacturing plant in Lansing, set to begin production later this year.
Since 2020, GM has announced over $12 billion in investments for its North American EV manufacturing and supply chain development.
GM stock has gained more than 19% in the past 12 months. Investors can gain exposure to the stock via First Trust Nasdaq Transportation ETF (NASDAQ:FTXR) and Invesco S&P 500 Pure Value ETF (NYSE:RPV).
Price Action: GM shares are trading higher by 2.67% at $47.76 at last check Thursday.
Read Next:
- GM Appoints Marc Whitten As New Cruise CEO, Gears Up For Robotaxi Resumption Amid Tesla Challenge
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.