Kaptur Announces $32 Million DOE Investment In EV Battery Production At New Mobis North America Facility In North Toledo
Washington, DC — Today, Congresswoman Marcy Kaptur (OH-09), Ranking Member of the House Appropriations Subcommittee on Energy and Water Development, announced a $32,617,879 EV Conversion Grants program award for American Autoparts and Mobis North America. The Project consists of two phases where American Autoparts will convert its existing ICE complete chassis assembly plant located at the Stellantis Toledo Assembly Complex, into a PHEV and ICE complete chassis assembly plant, retaining 345 UAW union jobs and creating an estimated 38 new union labor jobs supporting the manufacture of a new light PHEV truck, and construct a new battery system assembly plant located at the new 285,000 square-foot spec building Mobis North America facility at the Toledo Trade Centre Industrial Park, the former site of the North Town Square Mall, creating 185 new jobs and manufacturing battery packs for PHEV SUVs, PHEV light trucks and PHEV minivans. The total project cost is $65,235,758, with American Autoparts and Mobis North America matching DOE’s $32,617,879 investment. This award follows the announcement of an initial investment of $13.8 Million by Mobis North America in their new North Toledo facility in December 2023.
This is part of $1.7 Billion in DOE announced funding to support the conversion of 11 auto manufacturing and assembly facilities across eight states — Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia — to manufacture electric vehicles and build their supply chain. This announcement reflects the commitment to reinvest and revitalize – and never give up on — the manufacturing communities and the workers who have helped build America’s middle class. These investments will create and retain thousands of good-paying union jobs and support the American auto communities that have driven the US economy for generations. They deliver on the commitment to ensure the future of the auto industry is made in America by American union workers, and that the US wins the competition for the 21st century.
“Late last year, we saw Mobis invest $13.8 Million toward construction of a new battery plant that will create 185 new jobs in North Toledo — now we know this was just a down payment on the future of our city, our region, and our people. I am proud today to join Secretary Granholm and the Department of Energy in announcing an additional investment of more than $65 Million, half of which will be Federal, to advance construction of the new battery plant and to convert Mobis’ existing chassis assembly plant at the Stellantis Toledo Assembly Complex into a facility that will support the manufacture of the Jeep Gladiator Plug-In Electric Hybrid Vehicle,” said Congresswoman Marcy Kaptur (OH-09). “This DOE award of over $32 Million is an investment in the green economy and the working people who will keep the automotive heart of our Nation beating strongly in Northwest Ohio. Today we further the creation of hundreds of good-paying jobs, while safeguarding hundreds more, including those of 354 members of the United Auto Workers."
“There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry,” said US Secretary of Energy Jennifer M. Granholm. “Even as our competitors invest heavily in electric vehicles, these grants ensure that our automotive industry stays competitive—and does it in the communities and with the workforce that have supported the auto industry for generations.”
“President Biden set out to build a clean energy economy that benefits everyone,” said John Podesta, Senior Advisor to the President for International Climate Policy. “Today’s awards from the Department of Energy help bring that vision to life by investing in the future of the auto industry, creating thousands of good-paying union jobs, and tackling the existential threat of climate change by cutting pollution from the transportation sector.”
“Today’s announcement from the Department of Energy is a big win for the American people and demonstrates President Biden’s bold vision for how we are choosing to take on the climate crisis: with America’s workers leading the way,” said Assistant to the President and National Climate Advisor Ali Zaidi. “This ground-breaking program is central to catalyzing expansion of the industrial capacity to help us meet the President’s climate goals and allow tens of thousands of skilled American workers to participate in the great comeback story of American manufacturing.”
The Domestic Manufacturing Auto Conversion Grants program helps ensure that the US continues to lead the world in auto manufacturing, led by the communities and workers who know this business best. The selectees will negotiate for awards to enable them to manufacture products covering a broad range of the automotive supply chain, including parts for electric motorcycles and school buses, hybrid powertrains, heavy-duty commercial truck batteries, and electric SUVs. Today’s announcement complements the $177 billion in private sector investment in EV and battery manufacturing spurred to date by the President’s Investing in America agenda. This program also supports the Biden-Harris Administration’s efforts to strengthen domestic supply chains, support American workers, and bolster America’s global leadership in manufacturing.
The award selections are subject to negotiations to ensure that commitments to workers and communities are met. DOE will also complete environmental reviews to ensure that the awards are consistent with the Administration’s commitments to clean, environmentally responsible manufacturing, and include appropriate mitigation as needed. If awarded, the selected projects would collectively create over 2,900 new high-quality jobs and help ensure over 15,000 highly skilled union workers are retained across all eleven facilities.
The Domestic Auto Manufacturing Conversion Grants program, funded by the Inflation Reduction Act, invests in the domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles. This program aims to expand manufacturing of light-, medium-, and heavy-duty electrified vehicles and components and support commercial facilities including those for vehicle assembly, component assembly, and related vehicle part manufacturing.
Selection for award negotiations is not a commitment by DOE to issue an award or provide funding. Before funding is issued, DOE and the applicants will undergo a negotiation process, and DOE may cancel negotiations and rescind the selection for any reason during that time. The funding for the Domestic Auto Manufacturing Conversion Grants will be administered by DOE’s Office of Manufacturing and Energy Supply Chains (MESC). Learn more about the MESC mission to catalyze investments in America’s energy future in support of the re-shoring, skilling, and scaling of US manufacturing across energy supply chains.
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