Electric School Bus Manufacturing Included in Nearly $2B Federal Energy Grant

July 11, 2024

Still image from a YouTube video highlighting the opening of Blue Bird's electric school bus build-up center in May 2025.

Blue Bird and Cummins are used to partnering with each other to build electric school buses, namely the next-generation Type C Vision Electric that was unveiled at last year’s STN EXPO Reno.

Now, the companies together are receiving 9 percent of a $1.7 billion U.S. Department of Energy Grant to convert shuttered or at-risk automotive manufacturing and assembly plants to produce electric vehicles, enhance supply chains and create jobs.

The Domestic Manufacturing Conversion Grant Program grants announced on Thursday are mandated by the Inflation Reduction Act to upgrade and develop 11 facilities in eight states.

Blue Bird was awarded over $79.7 million to convert a diesel-powered motorhome manufacturing location in Fort Valley, Georgia, into a new 600,000 square-foot manufacturing facility for the production of Type D electric school buses. The Department of Energy said the grant will also allow Blue Bird to focus on the education and training of its current and future workforce. Blue Bird said it expects to add 400 new jobs.

Last year, Blue Bird opened an electric school bus build-up center to increase production capacity to 5,000 units a annually.

Meanwhile, Cummins is investing $75 million to match a $75 million grant award to convert approximately 360,000 square-feet of the company’s Columbus Engine Plant to house manufacturing for Accelera zero-emissions components and electric powertrain systems that Cummins estimates will result in a reduction of approximately 104 million metric tons of carbon dioxide by 2030. The company forecasts creating an additional 250 manufacturing jobs.

Read details about the awards from Blue Bird and Cummins and Accelera.

Thursday’s biggest winner was Fiat-Chrysler at over $585 million for converting a transmission plant in Belvedere, Illinois, and an assembly plant in Kokomo, Indiana. GM is receiving $500 million for an EV conversion plant in Lansing, Michigan, while Volvo America won over $208 million for three facilities in Maryland, Pennsylvania and Virginia.