GM receives $500 million federal grant to convert Michigan plant

The Lansing Grand River Assembly Plant of General Motors has been awarded a $500 million grant toward preparation to become a producer of electric vehicles.

It comes from the U.S. Department of Energy, led by Secretary Jennifer Granholm – former governor of the Great Lakes State.

The Lansing plant has been in operation more than 20 years, but with a Domestic Manufacturing Conversion Grant, it will begin to produce electric vehicles in addition to its current Cadillac CT4 and CT5 series. The decision is a part of a broader company plan to invest in onshore production of electric vehicle components.

“GM’s investment and this Department of Energy grant underscore our commitment to U.S. leadership in manufacturing and innovation, making sure we’re competitive at home and abroad,” said Camilo Ballesty, GM vice president of North America Manufacturing and Labor Relations. “Our Lansing Grand River team produces incredible vehicles for our customers, and we’re proud to bring our commitment to performance and quality into our EV future.”

Grand River is not the first GM manufacturer to convert to an electric vehicle focus. Other GM plants that are switching to electric include Factory ZERO Detroit-Hamtramck Assembly Center and Orion Assembly in Michigan, Fairfax Assembly in Kansas, Toledo Propulsion Systems in Ohio and Spring Hill Manufacturing in Tennessee.

The Michigan automotive industry has been given billions in state and federal subsidies for electric vehicle, component and charger manufacturing. The state decided in its new budget, voted on last month, to continue to fund green energy entrepreneurship through its State Outreach and Attraction Reserve Fund.

While GM has mostly had success converting to electric vehicle manufacturing, other Detroit-based companies have faced recent challenges. This month, Ford Motor Company agreed to scale back its battery factory plans in Marshall, resulting in a loss of more than $750 million in state tax credits.

Since 2020, GM has expanded its electric vehicle development program by more than $12 billion.