$1.1 billion EV grant for GM and Stellantis faces possible cancellation

$1.1 billion federal Ev grant faces risk

The U.S. Department of Energy is reconsidering about $1.1 billion in previously announced grants for Stellantis and General Motors to convert U.S. plants for EV production.

The potential cancellation of this substantial funding amount is part of a broader review of government spending. The awards were announced in July 2024 as part of a $1.7 billion federal program to retool 11 at-risk facilities across eight states.

Funding review is part of $12 billion total

This specific $1.1 billion in funding is a key part of a much bigger amount of money being reviewed nationwide. The total review covers approximately $12 billion in clean energy grants that could be canceled or put on hold by the U.S. government.

The DOE began examining these substantial awards in October 2025, following ongoing budget disputes in Washington, D.C. If the money is revoked, it would slow down the change from old, gas-powered vehicle factories to new electric vehicle plants.

General motors was awarded $500 million

General Motors was a major player meant to receive $500 million from the overall grant to help convert one of its assembly plants. This investment was intended for the large Lansing Grand River Assembly plant located in the state of Michigan.

The goal of the grant was to help retain over 650 existing jobs at that specific Michigan location. GM had already committed over $12 billion to its own North American EV manufacturing investments since 2020.

Stellantis was promised $585 million total

The second major company, Stellantis (owner of Jeep and Ram), was set to receive nearly $585 million for its own factory projects. This funding was to be split between a plant in Illinois and a parts plant in Indiana.

The funds for Stellantis were part of a larger plan by the government to help preserve a total of 15,000 existing union jobs across the U.S. auto industry. The money was meant to protect workers during the change to EV production.

$334.8 million for the illinois assembly plant

To break down the Stellantis funding, exactly $334.8 million was marked for one specific factory in the state of Illinois. The funding was meant to convert the shuttered Belvidere Assembly plant into a modern center for EV assembly.

The grant was expected to help create nearly 3,000 new positions for workers needed to build these electric vehicles; the total federal program aimed to convert a total of 11 different plants across eight U.S. states.

$250 million was for indiana component plant

The remaining grant for Stellantis was $250 million for a parts factory in Kokomo, Indiana, to make EV components. This funding would enable the conversion of the existing Indiana Transmission Plant to produce electric drive modules.

The electric drive modules are essential components that enable an EV to move, and this grant would help produce them domestically. Stellantis had also made plans to build a new mid-size truck factory in Belvidere under a recent UAW union agreement.

Grant aimed at ‘at-risk’ facilities

The primary objective of the entire program was to focus on factory sites considered “at-risk” of closure and job loss.”The whole program, costing $1.7 billion, is intended to enable the production of 1 million EVs annually.

Energy Secretary Jennifer Granholm said this significant investment would help the U.S. compete with other countries that subsidize their own car companies. The grant funds cover EV parts for motorcycles, school buses, and heavy-duty trucks.

Stellantis shifted its 2030 EV sales goal

This potential loss of government funds comes at a time when Stellantis is already making significant company changes. The automaker has officially abandoned its goal of achieving 100 percent electric vehicle sales in Europe by 2030.

The company had previously committed $36 billion to its electrification plan, called “Dare Forward 2030.” In Sept. 2025, Stellantis dropped its goal of 100% EV sales in Europe by 2030. Under the leadership of CEO Antonio Filosa, the company has adopted a multi-energy approach, including the development of hybrids.

Ram 1500 Rev pickup model was canceled

As part of this new strategy, Stellantis has recently chosen to cancel the development of its all-electric pickup truck, the Ram 1500 REV model. This decision was made because of lower consumer demand for full-electric trucks and slower segment sales.

The company is now moving forward with an extended-range hybrid version of the truck, rather than the full-electric model. Stellantis also reportedly scrapped the all-electric Jeep Compass known as the J4U program.

Stellantis may face €3 billion in carbon fines

Stellantis’s shift away from fully electric vehicles has significant financial consequences, including in Europe. The company has purchased carbon credits to help avoid fines that could total close to €2.5 billion over the next three years.

The company is also investing $3.2 billion in a joint venture for a new U.S. battery plant to supply its future vehicles. Stellantis will instead rely on hybrid and electric models to meet regulations without purchasing additional credits.

GM reverses plan to extend EV lease credit

In October 2025, GM backed away from a workaround to extend the $7,500 federal EV lease credit after the subsidy expired, opting instead to fund limited incentives.

This was a price change that affected customers who were going to lease the popular, smaller EV. The Chevrolet Bolt EV was the most affordable electric vehicle in America, returning for a limited run in the 2027 model year.

Volvo group received $208 million for trucks

This grant review not only impacts GM and Stellantis but also affects other companies. The Volvo Group was set to receive $208 million to upgrade three of its U.S. manufacturing facilities.

This significant investment was intended to enhance their capacity to develop electric versions of large commercial trucks. They produce Mack and Volvo-branded trucks from their plants in Pennsylvania, Virginia, and Maryland.

Harley-davidson got $89 million for ev bikes

The government grant also went to companies producing smaller electric vehicles, such as motorcycles. Harley-Davidson was awarded nearly $89 million to expand its facility in York, Pennsylvania, for new EV production.

This large project was designed to help retain more than 1,300 union workers at the Pennsylvania site. The company plans to hire over 125 new workers for the electric motorcycle manufacturing expansion.

ZF North America received $158 million grant

ZF North America, a major parts supplier for numerous companies, also received a substantial portion of the grant money. They were awarded $158 million to convert a portion of their factory in Marysville, Michigan, to produce EV components.

The plan was to retain 536 jobs at the factory, including 387 UAW union positions, as it changed its focus. The funding will help the facility produce electric powertrain components instead of gas-engine parts.

Blue Bird Body company received $80 million

Another vital company that received federal money was the Blue Bird Body Company, a manufacturer of school buses. They were set to receive almost $80 million to convert one of their manufacturing facilities in the state of Georgia.

The funding would help transform a factory that once made diesel-powered motor homes into a place that produces electric school buses. This project is expected to create over 400 new, high-paying, and highly skilled jobs.

Thinking of switching to electric on a budget? See how China’s Leapmotor sells the cheapest electric vehicle in China after mirroring a government grant.

Cummins received $75 million for engine parts

Finally, the grant funding also went to companies that manufacture key internal parts for vehicles, such as Cummins. Cummins received $75 million to convert part of their existing factory in Columbus, Indiana, for zero-emission parts.

The money will transform 360,000 square feet of the Columbus Engine Plant into an electric powertrain systems facility. This shows how the overall program, now facing a $1.1 billion review, aimed to keep America’s entire manufacturing base competitive.

Wondering if this new grant will truly boost EV sales? Find out in new £3,750 EV grant arrives but will it spark real change?

What’s your take on the government’s sinking this $1.1 billion EV boost? Share your thoughts below.

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This slideshow was made with AI assistance and human editing.