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COLUMBUS, Ind. — Columbus’ largest employer is receiving significant support in the expansion of its zero-emissions business segment.
Cummins Inc. is the recipient of a $75 million federal grant to be used to convert nearly half of Columbus Engine Plant (CEP) for electrification, the company announced Thursday.
The grant is the largest grant ever awarded to Cummins, the company said, and was paid for through appropriations related to 2022’s Inflation Reduction Act (IRA).
Cummins and city officials, along with U.S. Department of Energy Under Secretary for Infrastructure David Crane gathered together for the announcement Thursday afternoon.
Cummins is matching the grant, meaning a total of $150 million will go towards the conversion of the space, expanding production of battery packs, powertrain systems and other battery-electric vehicle (BEV) components for Accelera by Cummins.
“This DOE grant is another step forward in the progress we are making toward a zero-emissions future and expanding battery manufacturing in the United States, strengthening our global position in electrified solutions for commercial markets,” said Amy Davis, President of Accelera by Cummins.
The company rebranded the segment in 2023, seeking to secure its place in a world shifting away from the fossil fuels that Cummins engines have traditionally used.
Of the 1.42 million square-foot building, 360,000 square feet will be reserved for BEV-related work, with 350 employees working in the space once the conversion is finished, according to the company.
Jennifer Rumsey, Chair and CEO of Cummins, said the grant is a chance for the company to “broaden the legacy” of the site of their first engine plant, which opened in 1926.
“By expanding the production of batteries and electric vehicle components at CEP, at the same plant where we manufacture blocks and heads for our current and next-generation, engine-based solutions, we continue to prove our commitment to Destination Zero and dedication to innovation, strengthening the communities we serve and environmental stewardship,” Rumsey said. “As a Columbus native, I am especially proud of the significant contribution Cummins is making to economic and social vibrancies of the local community alongside our broader goals of improving and decarbonizing commercial and industrial applications.”
Destination Zero is the company’s previously announced goal of achieving zero emissions by 2050, including interim goals by 2030.
Cummins will add 250 full-time jobs at the facility due to the conversion, and there will be opportunities for the plant’s existing workforce to transition to the new positions over time, Cummins officials said. The electric powertrains produced at CEP will lead to greenhouse gas emission reduction of approximately 104 million metric tons of carbon dioxide by 2030, per the company. That calculation
“This expansion by Accelera reinforces the commitment the company has made to clean energy and a more sustainable future,” Mayor Mary Ferdon said. “Columbus also benefits from the re-investment in our workforce and the conversion of CEP space for advanced technology. We’re excited about this $150 million investment which moves the company forward in its zero-emissions manufacturing and de-carbonization goals and we’re proud to celebrate this milestone award from the Department of Energy.”
The $75 million Cummins received is part of a total of $1.7 billion in federal grants issued by the Energy Department for electric vehicle manufacturing and assembly sites in Michigan, Pennsylvania, Georgia, Ohio, Illinois, Indiana, Maryland and Virginia. Kokomo-based Stellantis, the parents company of Dodge, Ram and Jeep, received $250 million to convert a transmission plant to produce electric vehicle components, per the Energy Department.
This story will be updated.