DOE Weighs Revoking $1.1 Billion In EV Retooling Grants For Stellantis
Biden-Era Funding For Major U.S. Auto Plant Conversions Could Be In Jeopardy
The U.S. Department of Energy (DOE) is reportedly considering withdrawing nearly $1.1 billion in federal funding initially awarded to Stellantis and General Motors (GM) to support the conversion of electric vehicle (EV) manufacturing.
According to Reuters, the DOE review is part of a larger evaluation of roughly $12 billion in federal awards that could be canceled or suspended as the government contends with a partial shutdown. These funds were part of the Biden administration’s broader push to modernize legacy auto plants and secure American leadership in EV production.
Background: The 2024 Retooling Initiative –
Back in July 2024, we reported the Biden administration announced an ambitious funding package through the DOE, aimed at converting “at-risk” combustion engine plants into EV manufacturing hubs. The goal was to help maintain union jobs, stimulate economic activity in long-time auto towns, and strengthen the U.S. manufacturing base as EV demand continued to grow.
Under the plan, Stellantis was promised $585 million — including $335 million to convert its shuttered Belvidere Assembly Plant in Illinois into an EV assembly site and $250 million for its Indiana Transmission Plant in Kokomo to begin producing electric drive modules.
These projects were touted as central to preserving 15,000 existing jobs and creating roughly 3,000 new positions across eight states.
Why The Funding May Be Revoked –
On October 7, 2025, new reports indicated that the DOE is now reconsidering those 2024 awards. The potential revocation is tied to a wider reassessment of federal spending amid ongoing fiscal uncertainty in Washington, D.C. If rescinded, the decision could delay or derail critical plant modernization efforts in both Michigan and Illinois.
The timing is particularly challenging for Stellantis, which has begun shifting away from its aggressive all-electric roadmap in recent months. The automaker has canceled the all-electric Ram 1500 REV and its long-range REV XL, scrapped the all-electric Jeep® Compass (J4U) program, and repositioned the upcoming Chrysler C6X crossover as a hybrid instead of a full EV. Internal supplier sources have also suggested that the high-performance 800-volt Dodge Charger Daytona SRT Banshee has been canceled, further underscoring Stellantis’ evolving EV strategy.
What’s At Stake –
If the DOE follows through with the revocation, both automakers could lose critical federal support at a time when the industry faces mounting costs, slower-than-expected EV adoption, and intense political scrutiny. The move could also undercut the Biden administration’s efforts to showcase its investment in clean energy manufacturing ahead of the 2026 election cycle.
Source: Reuters
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