The grant revocation and what it means for car buyers

In January 2025, the U.S. Department of Energy revoked $1.7 billion in EV manufacturing grants that had been awarded to Stellantis (which owns Jeep, Ram, and Chrysler) and General Motors. The revocation was tied to both companies' decisions to slow their EV production timelines and shift manufacturing plans away from the original locations where the grants were intended to be used.

This action does not directly change the federal tax credit you can receive when buying an electric vehicle — that $7,500 credit remains available through the end of 2032 for vehicles that meet certain assembly and price requirements. What changed is the government funding that was supposed to help these two automakers build the factories where those vehicles would be made.

If you are considering buying an EV from either company, or if you work in automotive manufacturing, understanding what this revocation means for production timelines and vehicle availability is useful context for your decisions.

Key Takeaways

  • Stellantis and GM each lost roughly $850 million in federal grants meant to fund EV battery and vehicle manufacturing plants.
  • The revocation was triggered by both companies announcing delays to EV production and changes to where they planned to build vehicles.
  • The federal EV tax credit for individual car buyers remains unchanged and is not affected by this grant loss.
  • Production delays at these companies may affect the timeline and availability of certain EV models, though existing vehicles already in production continue as planned.

Why the Department of Energy revoked the grants

The Department of Energy awarded these grants under the Bipartisan Infrastructure Law, passed in 2021. The grants were conditional: the companies had to build manufacturing facilities at specific locations and meet production timelines outlined in their original proposals.

Both Stellantis and GM announced in late 2024 that they were slowing their EV production ramp-up and, in some cases, moving planned facilities to different locations or delaying their construction. Stellantis, for example, delayed the opening of an EV battery plant in Indiana and scaled back production timelines. GM announced it would slow the pace of EV vehicle launches and adjust its manufacturing strategy.

When companies fail to meet the conditions attached to federal grants, the government can and does revoke the funding. The Department of Energy determined that both companies could no longer meet the terms they had originally agreed to, so the grants were withdrawn.

What this means for EV buyers right now

If you are shopping for an electric vehicle, the federal tax credit of up to $7,500 remains available. This credit is separate from the manufacturing grants and is not affected by the revocation. You can still receive this credit when buying a may have access to EV from any manufacturer, including Stellantis and GM brands.

What may change is the timeline for certain EV models. Stellantis owns Jeep, Ram, Chrysler, and Peugeot, and GM owns Chevrolet, GMC, Cadillac, and Buick. If either company delays the launch of a new EV model or reduces production of an existing one, you may have fewer options or longer wait times for certain vehicles.

For vehicles already in production — like the Chevrolet Bolt EV, the GMC Hummer EV, or Jeep's upcoming electric models — the revocation does not when ready halt manufacturing. However, future expansion of production capacity may slow.

How this affects manufacturing jobs and plant construction

The grant revocation has real consequences for the communities where these plants were supposed to be built. Stellantis had planned to build or expand facilities in Indiana, Ohio, and other states. GM had similar plans across multiple locations. The loss of federal funding makes it less likely these projects will move forward on the original timeline, if at all.

Workers who were expecting jobs at these facilities may see delays or cancellations. Local governments that had approved tax incentives or infrastructure improvements tied to these projects may need to reassess their plans. The ripple effects extend beyond the automakers themselves to suppliers and communities that depend on automotive manufacturing.

Both companies have stated they remain committed to EV production, but without federal grant support, the pace and scale of that commitment may be smaller than originally announced.

What other EV manufacturers are doing

Other automakers have received grants under the same Bipartisan Infrastructure Law program, including Ford, Volkswagen, and Tesla. These companies have not faced revocations because they have either maintained their original production plans or adjusted them in ways that still meet the grant conditions.

Ford, for example, has continued building EV battery plants in Kentucky and Tennessee as planned. Tesla has expanded its existing facilities. Volkswagen is moving forward with battery manufacturing in Tennessee. The difference is that these companies have not announced the kind of broad delays and location changes that triggered the revocation for Stellantis and GM.

This creates a competitive advantage for manufacturers whose grant funding remains intact, as they have federal support for factory construction while Stellantis and GM now must fund those projects themselves or scale them back.

What happens to the revoked grant money

When the Department of Energy revokes a grant, the money does not automatically go to another company. The funds return to the federal government and can be reallocated through future appropriations or grant programs. Congress would need to approve how that money is spent.

There has been discussion about whether the Department of Energy might offer the grants to other manufacturers or redirect them to different EV manufacturing projects, but no formal announcement has been made about the specific reallocation of these funds.

Frequently Asked Questions

Does this affect the $7,500 EV tax credit I can get when buying a car?

No. The federal EV tax credit remains unchanged. This revocation only affects the manufacturing grants to the companies, not the credits available to individual buyers. You can still receive up to $7,500 when buying a may have access to electric vehicle from any manufacturer.

Will Stellantis and GM stop making electric vehicles?

No. Both companies have stated they remain committed to EV production. The revocation slows their expansion plans and delays new facilities, but it does not end their EV programs. Existing EV models will continue production, though the pace of new model launches may slow.

Should I wait to buy an EV from GM or Stellantis, or buy from another company instead?

That depends on which vehicle you want. If you are interested in a specific model from Chevrolet, GMC, Jeep, or Chrysler, check the current production timeline with the dealer. If you are flexible on brand, other manufacturers like Ford, Tesla, and Volkswagen have grant funding intact and may have more stable production schedules.

What does this mean for used EV prices from these companies?

Used EV prices are driven by supply, demand, and vehicle condition rather than manufacturing grants. However, if production delays reduce the supply of new EVs from these companies, used models may become relatively more valuable. This is speculative and depends on many market factors.

Can Stellantis or GM get the grants back if they meet the conditions later?

The Department of Energy has not indicated that the grants can be reinstated. Once revoked, the funding is typically considered lost. Both companies would need to propose new projects and compete for future grant opportunities if they become available, but there is no may provide they would be awarded.