WASHINGTON, July 12, 2024 (BSS/AFP) - US President Joe Biden's administration said Thursday it is issuing $1.7 billion in grants to help expand or revive auto facilities for making electric vehicles and parts -- including in election battlegrounds Michigan and Georgia.

The funds will go towards converting 11 shuttered or at-risk facilities in eight states, covering another battleground Pennsylvania, and others like Ohio, Illinois and Indiana.

The aim is to help them retrofit to make EVs and officials said the investment -- paid for by the Inflation Reduction Act -- will save 15,000 jobs.

"This investment will create thousands of good-paying, union manufacturing jobs and retain even more -- from Lansing, Michigan to Fort Valley, Georgia -- by helping auto companies retool, reboot, and rehire in the same factories and communities," said Biden in a statement.

The announcement comes as Biden, 81, battles calls to end his reelection bid after a disastrous debate performance against Republican Donald Trump last month.

It is also the latest Biden administration effort to support US industries in the face of competition from China.

US leaders in recent months have warned that excess industrial capacity in the world's second largest economy could bring a flood of low priced goods to the market, potentially hurting budding clean energy industries elsewhere.

Washington also announced sharp tariff hikes on Chinese imports earlier this year, including on EVs.

"There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry," said Secretary of Energy Jennifer Granholm.

She noted that the grants will help to "ensure that our automotive industry stays competitive," saying that the sector needs a federal partner when competing with other countries who subsidize their auto industries.

Beneficiaries include automakers like General Motors, Fiat-Chrysler and Volvo.