The Biden administration is sending $500 million to a Lansing General Motors plant to support electric vehicle production.
The investment is part of a $1.7 billion federal program to support auto manufacturing plants that are at risk of closing. The grant will help GM retool the Lansing Grand River Assembly Plant from an internal combustion engine manufacturing facility to a site for EVs.
U.S. Department of Energy Secretary Jennifer Granholm, visiting the plant to make the announcement Thursday, said the Biden administration is advancing the nation’s climate goals while building up the country’s work force.
"If it's a clean energy revolution the world wants, then it's what they're going to get," Granholm said. "But you better believe it's going to be proudly stamped 'Made in America' and 'Made in Michigan.'"
GM is putting $900 million of its own funds into the conversion. The Department of Energy said the federal grant will help GM retain more than 600 union workers and create 50 new jobs at the plant.
Manufacturers in eight states were selected for the program, with the Lansing plant receiving the largest share of the grant funding. A facility in St. Clair County was also awarded $157.7 million to develop components for EVs.
The department said the investments would retain 15,000 existing jobs and create 290 new positions across the country.
Granholm, a former Michigan governor, said the project will bolster the state’s economy.
"We're going to support thousands of shop owners and restaurant employees and other folks in the Lansing [community] whose livelihoods depend on a robust auto industry, on the pulse of Michigan's auto economy."
The investment comes as construction is underway for an Ultium Cells EV battery plant in Lansing as well as funds to build EV chargers in the region.
Lansing Mayor Andy Schor applauded the investment, arguing the city is positioned to be "the EV capital of the world."
"We put the world on wheels, we know that," he said. "And now we know that the next generation of cars, we're going to put the world on electric wheels."
The grant funding is subject to an environmental review and negotiations with the Department of Energy.