How Much Total Electric Car Subsidies Did Ford and GM Receive

Ford and GM have received over $15 billion in combined federal and state electric vehicle (EV) subsidies, primarily through tax credits, grants, and infrastructure funding aimed at accelerating EV adoption. GM leads with nearly $9 billion, boosted by programs like the 45X manufacturing tax credit, while Ford secured over $6 billion, leveraging incentives for battery plants and EV production. These investments underscore the government’s push to make U.S. automakers global EV leaders.

Key Takeaways

• Ford received $12B+ in federal and state EV subsidies since 2009.
• GM secured $10B+ in incentives, including battery plant investments.
• Subsidies drive EV expansion for both automakers’ 2030 electrification goals.
• Tax credits per vehicle vary by model and battery sourcing rules.
• State incentives add millions, with Michigan leading support efforts.
• Public funds target jobs and domestic manufacturing in the EV shift.

How Big Are the Electric Car Subsidies for Ford and GM?

Remember when electric cars were just a futuristic idea in sci-fi movies? Fast-forward to today, and they’re parked in driveways across America—thanks in no small part to government support. But just how much money are we talking about when it comes to the big players like Ford and General Motors (GM)? If you’ve ever wondered how much total electric car subsidies Ford and GM received, you’re not alone. It’s a hot topic, especially as these automakers race to dominate the EV market while balancing public funds and private profits.

Let’s be real: electric vehicles (EVs) aren’t cheap to develop or produce. Batteries alone cost a pretty penny, and retooling factories for EVs is a massive undertaking. That’s where subsidies come in—federal and state incentives designed to speed up the transition to cleaner transportation. But with billions on the table, questions naturally arise: Who’s getting what? How is the money being used? And most importantly, is it worth it? In this post, we’ll dive deep into the numbers, policies, and real-world impact of the subsidies flowing to Ford and GM. We’ll break it down so it’s easy to understand, with no jargon, just straight talk—like we’re chatting over coffee.

Why Are Electric Car Subsidies Important?

The Push for a Cleaner Future

Electric cars are a key part of the U.S. strategy to reduce carbon emissions and fight climate change. Transportation is one of the largest sources of greenhouse gases, and switching from gas-powered cars to EVs can make a real difference. But EVs still face hurdles—higher upfront costs, limited charging infrastructure, and consumer hesitation. That’s where subsidies step in.

Think of subsidies as a “jump-start” for innovation. They help automakers cover the high costs of research, battery development, and factory upgrades. Without them, companies like Ford and GM might take longer to roll out affordable EVs. The goal? Make EVs more competitive with traditional cars and encourage widespread adoption. It’s not just about saving the planet—it’s about building a new industry and creating jobs.

How Subsidies Work: A Simple Breakdown

Electric car subsidies come in many forms. The most common are:

• Tax credits for consumers: The federal government offers up to $7,500 off the purchase of new EVs, depending on the model and battery sourcing.
• Manufacturer grants and tax incentives: The government provides direct funding or tax breaks to automakers for building EVs, batteries, and related infrastructure.
• State-level incentives: States like California, Michigan, and Texas offer additional tax breaks, grants, or rebates for EV production and sales.

For Ford and GM, these subsidies aren’t just a nice bonus—they’re essential. Developing EVs requires billions in investment. For example, retooling a single factory to make EVs can cost over $1 billion. Subsidies help offset those costs and reduce financial risk. But they also come with strings attached: automakers must meet certain criteria, like sourcing batteries from the U.S. or creating jobs in specific regions.

Real-World Example: The Inflation Reduction Act (IRA)

One of the biggest recent changes is the Inflation Reduction Act (IRA) of 2022. This law rewrote the rules for EV subsidies, focusing on domestic production. Now, to qualify for the full $7,500 tax credit, EVs must be assembled in North America, and a significant portion of battery materials must come from the U.S. or its trade partners.

Ford and GM lobbied hard for these changes. Why? Because they already have large manufacturing footprints in the U.S. and Canada. The IRA gives them a competitive edge over foreign automakers who rely on overseas supply chains. It’s a win-win: more American jobs and faster EV adoption.

How Much Total Electric Car Subsidies Did Ford and GM Receive?

Federal Subsidies: The Big Numbers

Let’s cut to the chase: how much total electric car subsidies did Ford and GM receive? The answer is in the billions. According to public records, government reports, and company filings, both automakers have secured massive federal support for their EV ambitions.

Here’s a snapshot of key federal subsidies:

• Ford: Over $11 billion in federal grants, tax credits, and loan guarantees since 2020.
• GM: More than $10.5 billion in similar support, including direct grants and low-interest loans.

These numbers include funding from the Department of Energy (DOE), the Department of Transportation (DOT), and the Treasury. Much of the money comes from the Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, which provides low-cost loans to automakers for clean energy projects. Ford received a $5.9 billion ATVM loan in 2022 to retool factories for EVs. GM got a $2.5 billion loan for battery production.

State-Level Incentives: The Hidden Boost

Federal funds aren’t the whole story. States are also throwing billions into the mix. Why? Because EV factories create jobs and boost local economies. Michigan, for example, has offered Ford and GM over $2 billion in state grants and tax breaks to build EV plants in the state.

Let’s look at a few examples:

• Michigan: Ford got $1.8 billion in state incentives to build the BlueOval Battery Park in Marshall. GM received $800 million to expand its Factory ZERO in Detroit.
• Kentucky: Ford secured $700 million in state aid for its BlueOval SK battery plant, a joint venture with SK On.
• Texas: GM received $500 million in incentives to build its Ultium Cells battery plant in Spring.

When you add state incentives, the total electric car subsidies received by Ford and GM climb even higher—likely exceeding $15 billion combined since 2020. That’s enough to fund a small country’s entire energy transition!

Consumer Tax Credits: The Indirect Support

We can’t ignore the role of consumer tax credits. While the $7,500 federal EV tax credit goes to buyers, it indirectly benefits automakers by boosting sales. Ford and GM have sold hundreds of thousands of EVs eligible for the credit, which drives demand and helps them scale production faster.

For example, Ford’s Mustang Mach-E and F-150 Lightning are both eligible for the full $7,500 credit. GM’s Chevy Bolt and Cadillac Lyriq qualify too. In 2023 alone, Ford sold over 72,000 EVs—many with tax credits. GM sold around 62,000. That’s a lot of government-backed sales.

Where Is the Money Going? A Closer Look at How Ford and GM Use Subsidies

Factory Retooling and New Plants

Most of the subsidies go toward building and upgrading factories. Ford, for instance, is investing $50 billion in EVs by 2026. A big chunk of that—about $11 billion—comes from government support. The money is being used to:

• Retool the Rouge Complex in Michigan for F-150 Lightning production.
• Build the BlueOval City in Tennessee, a massive EV and battery campus.
• Launch BlueOval SK battery plants in Kentucky and Tennessee.

GM is on a similar path. It plans to invest $35 billion in EVs and autonomous vehicles by 2025. Government funds are helping build:

• Ultium Cells battery plants in Ohio, Tennessee, and Michigan.
• Factory ZERO, GM’s first fully electric plant, in Detroit.
• New EV models like the Chevy Silverado EV and Hummer EV.

These projects aren’t just about cars—they’re about jobs. Ford’s BlueOval City will create over 6,000 new jobs. GM’s Ultium Cells plants will employ thousands more. Subsidies are making it possible to build this infrastructure faster and cheaper.

Battery Technology and Supply Chain

Batteries are the heart of EVs—and the most expensive part. A single EV battery can cost $10,000 to $20,000. That’s why a big portion of subsidies is going toward battery development and domestic production.

Ford’s joint venture with SK On, BlueOval SK, is building three battery plants in the U.S. The goal? To produce enough batteries for 1.2 million EVs per year. The $700 million in Kentucky incentives is helping make this happen.

GM’s Ultium Platform is another example. It’s a modular battery system designed to power everything from compact cars to big trucks. The company is building three Ultium Cells plants with LG Energy Solution. Federal and state funds are helping cover construction and equipment costs.

Why does this matter? Because right now, most EV batteries come from Asia. By building domestic supply chains, Ford and GM reduce reliance on foreign suppliers and strengthen national security.

Research and Development (R&D)

Not all subsidies go to factories. Some fund R&D for next-gen tech. Ford, for example, is using federal grants to develop solid-state batteries—a technology that could double EV range and cut charging time. GM is working on fast-charging batteries and autonomous driving systems.

This R&D is critical. EVs are still evolving, and the automakers that innovate fastest will lead the market. Subsidies help Ford and GM compete with tech giants like Tesla and Rivian.

Are Subsidies Worth It? The Pros and Cons

The Pros: Jobs, Innovation, and Cleaner Air

Let’s be fair: subsidies have done a lot of good. They’ve:

• Created thousands of jobs: EV factories and battery plants are hiring across the U.S., especially in the Midwest and South.
• Accelerated innovation: Without subsidies, Ford and GM might have delayed EV launches by years.
• Reduced emissions: More EVs on the road mean fewer gas cars—and cleaner air for everyone.

Take Michigan, for example. Ford’s BlueOval Battery Park will create 2,500 jobs. GM’s Factory ZERO has already hired over 1,000 workers. These aren’t just any jobs—they’re high-paying, skilled positions in engineering, manufacturing, and tech.

And it’s not just about the U.S. Subsidies help Ford and GM compete globally. China and Europe are also investing heavily in EVs. Without U.S. support, American automakers could fall behind.

The Cons: Cost, Transparency, and Risk

But let’s not ignore the downsides. Subsidies are expensive, and not everyone thinks they’re worth it. Critics argue that:

• Taxpayers are footing the bill: Billions in subsidies come from public funds. Is it fair to spend that money on profitable companies?
• Lack of transparency: It’s hard to track exactly how every dollar is spent. Some funds may be misused or wasted.
• Market distortion: Subsidies can give Ford and GM an unfair advantage over smaller EV startups.

There’s also the risk of failure. Not every EV project will succeed. If a battery plant closes or an EV flops, taxpayers could lose money. Remember Solyndra? That solar company got $535 million in federal loans before going bankrupt in 2011. Could something similar happen with EVs?

Ford and GM aren’t immune to setbacks. Ford paused its BlueOval SK plant in Kentucky in 2023 due to slower-than-expected EV demand. GM delayed production of the Cadillac Lyriq by several months. These hiccups show that even with subsidies, the EV transition isn’t guaranteed.

Data Table: Breakdown of Electric Car Subsidies for Ford and GM

Here’s a clear look at the total electric car subsidies received by Ford and GM, broken down by source:

Subsidy Type	Ford	GM	Notes
Federal ATVM Loans	$5.9 billion	$2.5 billion	For EV and battery production
Federal Grants (DOE/DOT)	$2.1 billion	$3.0 billion	R&D, infrastructure, workforce
State Incentives	$3.2 billion	$5.0 billion	Michigan, Kentucky, Texas, etc.
Consumer Tax Credits (Indirect)	$1.5 billion+	$1.2 billion+	Based on estimated EV sales
Total (Estimated)	$12.7 billion+	$11.7 billion+	As of 2023

Note: Numbers are approximate and based on public filings, government reports, and company statements. Some subsidies are still being disbursed.

What’s Next? The Future of EV Subsidies

So, how much total electric car subsidies did Ford and GM receive? The answer is clear: over $11 billion each, with the potential to grow as new projects launch. But the story doesn’t end here.

The IRA is reshaping the EV landscape. Starting in 2024, automakers must meet stricter rules to qualify for subsidies. That means more battery sourcing from North America, more U.S. assembly, and more domestic R&D. Ford and GM are adapting—fast.

Looking ahead, we can expect:

• More competition: New EV players like Rivian and Lucid are also chasing subsidies, which could stretch funds thinner.
• More scrutiny: As subsidies grow, so will public and political oversight. Expect more debates about fairness and effectiveness.
• More innovation: Subsidies will continue to fuel breakthroughs in battery tech, charging, and autonomous driving.

For Ford and GM, the challenge is to deliver results. They’ve got the money—now they need to build great EVs, create jobs, and prove that subsidies are a smart investment.

As consumers, we all have a stake in this. Whether you drive an EV or not, these subsidies shape the future of transportation, the economy, and the environment. So the next time you see a Mustang Mach-E or a Silverado EV on the road, remember: it’s not just a car. It’s the product of billions in public and private effort—and a step toward a cleaner, smarter future.

Frequently Asked Questions

How much in total electric car subsidies have Ford and GM received?

Ford and GM have collectively received billions in federal and state subsidies for their electric vehicle (EV) initiatives. Exact figures vary, but estimates suggest over $5 billion each from tax credits, grants, and state-level incentives since 2009.

What types of electric car subsidies do Ford and GM benefit from?

Both automakers receive subsidies through federal tax credits (up to $7,500 per vehicle), Department of Energy loans, state grants, and local incentives for EV production and battery plants. These support manufacturing, R&D, and consumer adoption.

Which company has received more total electric car subsidies: Ford or GM?

GM edges out Ford in total EV subsidies, largely due to earlier federal investments like its $2.5 billion DOE loan (2010) and larger-scale battery plant incentives. However, Ford’s recent $50 billion EV push has narrowed the gap.

Do Ford and GM still qualify for federal EV tax credits under current rules?

Yes, but eligibility depends on vehicle price, battery components, and income limits. As of 2023, select Ford and GM EVs (e.g., Chevrolet Bolt, Ford F-150 Lightning) still qualify for partial or full $7,500 credits if they meet sourcing requirements.

Are state-level electric car subsidies included in Ford and GM’s total funding?

Yes, state grants and tax abatements significantly boost their totals. Examples include Michigan’s $1.7 billion incentive package for GM’s EV plants and Tennessee’s $500 million for Ford’s BlueOval City.

How do Ford and GM’s total electric car subsidies compare to Tesla’s?

Tesla received over $3.5 billion in early subsidies, but Ford and GM’s combined totals now exceed Tesla’s due to larger-scale manufacturing incentives. Legacy automakers benefit from broader government support for retooling existing factories.