Pennsylvania auto plant gets federal help to transition to manufacturing electric vehicles
Five states are receiving grants from the Department of Energy.
The Department of Energy announced on July 11 that at-risk or shuttered auto manufacturing and assembly facilities in eight states, including Pennsylvania, have received grants that will be used to help with the transition from producing vehicles powered by fossil fuels to producing clean energy vehicles.
“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,” President Joe Biden said in a statement. “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,” Biden added.
The Energy Department said the federal support would complement $177 billion in private sector investment in electric vehicle and battery manufacturing that have been announced since Biden took office.
Volvo will receive $208 million for its facilities in Macungie, Pennsylvania; Dublin, Virginia; and Hagerstown, Maryland. The facilities produce the company’s Mack and Volvo heavy-duty trucks and will be upgraded to increase Volvo’s capacity to build electric vehicles. In total, the company will retain 7,900 union jobs among the three locations and create an additional 295 new jobs. Volvo said it would work with the United Auto Workers of America on programs for training and retaining the workforce.
In addition to Pennsylvania, the Department announced funding for facilities in Ohio, Michigan, Georgia, Maryland, Illinois, Indiana, and Virginia.
The Domestic Manufacturing Conversion Grants program was created by the Inflation Reduction Act that Biden signed into law in 2022. The law is the largest federal investment in combating climate change in American history and is designed to support programs that reduce the use of greenhouse gases.
The legislation passed in Congress with only votes from Democratic members and met unified opposition from Republicans.
