U.S. Energy Secretary Jennifer Granholm on EV Plant Conversions

By David Shepardson and Nora Eckert

DETROIT (Reuters) – U.S. Energy Secretary Jennifer Granholm stated on Tuesday that the department is expediting the finalization of $1.7 billion in grants aimed at converting plants for the production of electric vehicles (EVs) and their components.

> "We are working as fast as we can to finalize as much as we can — to get the commitments in contract with all of those who have been selected," Granholm remarked in an interview during the Reuters Next conference. "We have a few months to ensure that we're doing that."

The Department of Energy disclosed in July plans to allocate $500 million to General Motors (NYSE: GM) for converting its Lansing Grand River Assembly Plant in Michigan to EVs. Additionally, Stellantis (NYSE: STLA) is set to receive $334.8 million to convert its closed Belvidere Assembly plant for EV manufacturing, and $250 million for the Indiana Transmission Plant in Kokomo to produce EV components.

The United Auto Workers (UAW) has threatened strikes due to Stellantis's delays concerning the Belvidere investment, leading Stellantis to initiate legal actions to avert work stoppages.

On the topic of delays, Granholm noted, "there's a whole array of considerations with respect to that and we are in conversation about it."

Recently, UAW President Shawn Fain indicated that hundreds of thousands of U.S. jobs could be jeopardized if Donald Trump, the Republican presidential candidate, wins the Nov. 5 election and follows through on his threats to repeal electric vehicle investments. Trump argues that EV production jeopardizes U.S. jobs.

Democrats have criticized Trump's running mate, Senator JD Vance of Ohio, for not committing to maintaining the $500 million GM grant.

A GM spokesperson stated that the company is still in the negotiation phase of the grant and did not speculate on potential outcomes if the grant is not confirmed. Stellantis has not provided immediate comments.

GM shares rose 9.7% Tuesday afternoon, while Stellantis shares increased by 0.5%.

Granholm emphasized at the conference that President Joe Biden's industrial strategy for next-generation vehicle production is superior to previous efforts, declaring, "This time, the United States government is not effing around."

She reinforced that the Biden administration is assisting automakers in "cutting costs, securing supply chains, and innovating new technologies to help you be globally competitive." Granholm stated, "We are not just bringing a knife to a gunfight. We are bringing an armada now."

She concluded by highlighting the government's significant role, saying, "America's automakers are in this amazing race to dominate this industry and to ensure that as EVs take over the global market, places like Detroit aren't just keeping up but setting the pace."