*

Possibly on chopping block: GM EV plant funding in

Lansing,

Michigan

*

Stellantis Illinois electric truck plant also potential

target

*

Blue Bird ( BLBD ) electric school bus plant could also get funds

cut

By Valerie Volcovici, David Shepardson and Nichola Groom

WASHINGTON, Oct 7 (Reuters) -

The U.S. government is considering cancelling billions of

dollars in funding for clean energy programs, including awards

for auto manufacturing and carbon capture, according to a list

of targeted projects seen by Reuters.

Projects on the list include two major direct air capture hubs

that received billion-dollar awards from former President Joe

Biden's administration, including one that involves oil company

Occidental.

Semafor reported the list earlier and said it could impact

$12 billion in projects.

Also on the list is $500 million

awarded last year

to General Motors ( GM ) to convert its Lansing Grand River

Assembly Plant in

Michigan

to EVs; $335 million for Stellantis ( STLA ) to convert

the shuttered Belvidere Assembly plant in

Illinois

to build mid-size electric trucks; and $250 million for

Stellantis ( STLA ) to convert its

Indiana

Transmission Plant in Kokomo to produce EV components.

Last week, the Department of Energy announced plans to

cancel $7.56 billion in financing for hundreds of energy

projects it said would not provide sufficient returns to

taxpayers.

The Energy Department is also considering rescinding a $32

million award to Hyundai Mobis which operates a

Stellantis ( STLA ) supplier in Ohio to produce plug-in hybrid components

and battery packs and $89 million for Harley-Davidson ( HOG )

expand its York, Pennsylvania plant for EV motorcycle

manufacturing.

Also on the list is a $80 million award for Blue Bird ( BLBD )

to convert a former Georgia plant to build electric school

buses; and $75 million to engine company Cummins to

convert part of an existing Indiana plant to make zero-emission

components and electric powertrain systems.

The DOE also is considering cutting $208 million for the

Volvo Group to upgrade plants in Maryland, Virginia

and Pennsylvania to increase EV production capacity.

The Energy Department said in a statement it "continues to

conduct an individualized and thorough review of financial

awards made by the previous administration. No determinations

have been made other than what has been previously announced."

Occidental, GM, Harley-Davidson ( HOG ) and Stellantis ( STLA ) declined or

did not immediately comment.

The total sum of the grants in question was uncertain. The

list included some projects that DOE said in May it canceled.

The previous cancellations included $331 million at an

olefins plant carbon reduction at Exxon's Baytown, Texas

refinery; $500 million to Heidelberg Materials, US in Louisiana;

and $375 million to Eastman Chemical Company ( EMN ) in Texas

White House budget director Russell Vought said in a post on X

last week that the administration would terminate nearly $8

billion in climate-related funding in 16 Democratic-led states,

including California and New York.