Trump Pulling the Rug Out From Communities Counting on Jobs
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Overview
A centerpiece of Donald Trump’s campaign agenda has been to repeal the clean energy investments from the Inflation Reduction Act, a promise he made to oil executives at Mar-a-Lago. This would be devastating to communities across Michigan, jeopardizing many of the 21,748 clean energy jobs already announced since passage.
A disproportionate number of those jobs are also in disadvantaged communities that need those investments most. But perhaps the hardest hit will be those communities where clean energy investments are protecting or saving existing jobs, while also expanding existing factories that are already part of the fabric of those communities. The General Motors’ electric vehicle factory conversion in Lansing, MI represented by UAW Local 652, which is hosting Vice President Harris today, demonstrates how the clean energy boom is building an entire domestic supply chain from the ground up and creating crucial good-paying jobs in communities with legacies in American manufacturing. However, it is not the only example of the type of projects that will propel Michigan’s economy forward:
1. Electric Vehicle Manufacturing Investment Supports Lansing’s Auto Industry
Auto manufacturing provided a stable base for Lansing, Michigan’s economy for decades. Michigan’s first auto manufacturing facility was located in the city, and the Lansing area has been home to two major GM manufacturing facilities since the early 2000s. Lansing’s economy has diversified, but auto manufacturing has provided “stability” for the region’s overall economy.
In July 2024, as part of the Biden-Harris administration’s announcement of $1 billion in grants to help retool or reopen 11 auto plants, General Motors received a $500 million grant in July 2024 to convert its Grand River Plant in Lansing for EV manufacturing. The grant and an additional $900 million investment by GM will retool production lines at the facility for EV production. The conversion allows the facility to save 650 jobs represented by United Auto Workers Local 652 and add 50 additional jobs at the factory. Lansing’s Mayor, Andy Schor, said the investment meant that “Lansing will continue to put the world on wheels, now and for decades into the future.”
2. Electric Vehicle Manufacturing Is Revitalizing Bay City
Bay City, located in Mid-Michigan, has struggled to create good-paying jobs in the past decade. The city was devastated by the auto industry’s decline; the local GM manufacturing plant employed only a fraction of the workers that it did at its peak. Bay City’s economy was also hurt by the closure of nearby coal plants. However, now new clean energy investments in Bay City are creating good-paying jobs and revitalizing the region’s auto manufacturing sector while providing vital inputs for the domestic electric vehicle (EV) supply chain.
In February 2024, SK Siltron CSS received a $544 million conditional loan commitment from the Department of Energy’s Loan Programs Office to expand its silicon carbide wafer manufacturing facility in Bay City. The facility, which produces silicon carbide (SiC) wafers for power electronics in EVs, is projected to be among the top five manufacturers of SiC wafers globally thanks to expanded production made possible by the DOE loan. Terry Spencer, Monitor Township Supervisor, lauded the investment, “In order to keep our population that we have, our kids that are graduating high school and getting on to college, keep them in this area. We need to encourage investments like SK Siltron.”
In addition, in June 2023, Mersen USA announced a $71 million investment to expand its Bay City manufacturing facility with four new buildings, creating 70 new jobs. Mersens’ announcement followed a $1.6 billion expansion of Bay Carbon’s manufacturing facility, further demonstrating the resurgence of investments in Bay City. The facility manufactures carbide-coated graphite components, which are crucial to the silicon chips used in EVs. State Senator Kristen McDonald Rivet, who represents Bay City, praised the investment, noting that it would create good-paying jobs for the city.
3. Clean Energy Investments Are Revitalizing Michigan’s Energy Communities
In November 2023, LuxWall received a $31.7 million grant from the Department of Energy to construct a manufacturing facility in Detroit, Michigan. The manufacturing facility will be located on the site of a former coal plant in Detroit’s Delray neighborhood. LuxWall manufactures energy-efficient, vacuum-insulating glass that boosts heat retention by 45% and cooling retention by 60%. LuxWall planned to create 277 jobs at the factory, paying an average wage of $1,653 per week plus benefits. The company also planned to offer training and apprenticeship programs for local residents. LuxWall also pledged to install high-efficiency windows for local residents.
4. ZF North America Marysville Is Expanding Its Electric Vehicle Manufacturing
In July 2024, ZF North America received a $157.7 million grant to modernize its Marysville, Michigan manufacturing facility to manufacture EV components. The grant was funded by the Inflation Reduction Act’s Domestic Manufacturing Conversion Grants For Electric Vehicles Program. The grant program allowed ZF to retain 536 jobs at the facility. As a part of the grant program, ZF also pledged to work with local environmental groups to minimize the factory’s environmental impact.
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