Sign In or Create an Account.

By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy

Electric Vehicles

UAW Is Threatening to Strike Again — This Time Over Shelved EV Plans

Stellantis is pulling back at Belvidere.

The Belvidere Assembly plant.
Heatmap Illustration/Getty Images

One of the biggest wins the United Auto Workers’ secured in its historic negotiations with the Big Three automakers last year was a commitment from Stellantis to reopen and expand its shuttered factory in Belvidere, Illinois. Now the company is shelving those plans, which included retooling the factory to produce electric vehicles and EV batteries, and suing the union for threatening to strike in response.

The dispute illustrates a new turn in the EV transition. Whereas last year auto workers were wary of the transition and fighting to keep their jobs intact, now their jobs are dependent on that transition actually happening, and happening soon. The UAW is concerned that the company will delay the plant’s reopening until 2028 — after the union’s contract expires.

Stellantis idled the Belvidere plant, which previously produced Jeep Cherokees, in February 2023, laying off more than 1,300 workers. But under its agreement with the UAW, the company said it would spend nearly $5 billion to restart the factory. The contract includes commitments to opening a parts distribution hub there this year, producing a new mid-size truck there by 2027, and building an electric vehicle battery plant at the site by 2028. Not only would jobs at Belvidere be restored, but the battery plant was expected to employ an additional 1,300 people. Former Belvidere employees would also be reclassified as temporary layoffs and receive partial pay and full healthcare benefits until operations started up again.

President Joe Biden celebrated Belvidere as a “great comeback story” in his State of the Union speech in March. “Instead of an auto factory shutting down, an auto factory is reopening and a new state-of-the-art battery factory is being built to power those cars,” he said. “Instead of a town being left behind it’s a community moving forward again!”

In July, plans to turn Belvidere into an EV hub seemed to be taking shape when the Department of Energy selected Stellantis for a $335 million grant to transition the plant’s assembly lines to be able to produce electric vehicles. The grant website says the project was anticipated to incorporate “significant upgrades” to the plant’s infrastructure and re-employ about “1,450 unionized and highly skilled employees.” Stellantis, however, did not issue any press releases about the grant. In a statement to the Chicago Tribune, the company said it was “an important step in continuing to work toward finalizing a sustainable solution” for Belvidere.

About a month later, the narrative around Belvidere started to shift. UAW president Shawn Fain posted a video on social media claiming something was “rotten” at Stellantis and accused the company of “putting the brakes” on its plans to reopen the plant. On August 20, Stellantis confirmed that “plans for Belvidere will be delayed,” though it “firmly stands by its commitment” to reopen the plant. The company’s explanation for the decision was vague and did not include a new timeline. “To ensure the Company’s future competitiveness and sustainability,” it said, “it is critical that the business case for all investments is aligned with market conditions and our ability to accommodate a wide range of consumer demands.”

As it stands, the business is not exactly in a sustainable place. In July, Stellantis reported that its U.S. revenues were down 16% compared to the first half of last year. Declining sales have left dealerships with a glut of inventory. Fain blames the company’s poor performance on its CEO Carlos Tavares, questioning how “market conditions” could be holding back investments in Belvidere when Tavares took a 56% raise last year, “making him the highest paid auto executive outside of Tesla.”

In response, the company published a fact check of the union’s claims, which notes that “there is indisputable volatility in the market, especially as the industry transitions to an electrified future. Over the past year, numerous companies across the industry have announced investment and product delays as well as outright product cancellations.” Stellantis currently sells just one EV in the U.S., the Fiat 500e, which it manufactures in Italy; in September, the company announced it had suspended production due to poor sales, though it still has several new EV models slated to launch later this year.

More than a dozen local UAW units all over the country filed grievances against Stellantis in August, arguing that the company’s “failure to plan for, fund and launch these programs constitute a violation” of its contract. The union has threatened to strike if the grievances are not addressed, citing its “right to strike over product and investment commitments” — another provision of the 2023 contract.

Stellantis denies that it has violated the contract and thrown the accusation back at UAW, noting that the agreement included a clause that says it is understood that the investments are “contingent upon plant performance, changes in market conditions, and consumer demand.” It has since filed eight lawsuits against the union and several of its locals for threatening to strike.

The company has also not completely abandoned its plans for the EV transition. A few weeks ago, it announced it would invest more than $406 million to prepare three Michigan factories for EV production. During a livestream in September, Fain wrote off those investments as representing just a small portion of what the company committed to.

In response to questions about why investment in Belvidere was delayed, whether the company would still pursue the federal grant, or what the new timeline for the plant was, a representative from Stellantis sent me bullet points from the previously published fact check.

The Department of Energy did not answer questions about the status or timeline for the factory conversion grant.

You’re out of free articles.

Subscribe today to experience Heatmap’s expert analysis 
of climate change, clean energy, and sustainability.
To continue reading
Create a free account or sign in to unlock more free articles.
or
Please enter an email address
By continuing, you agree to the Terms of Service and acknowledge our Privacy Policy
Energy

Is Burying a Nuclear Reactor Worth It?

Deep Fission says that building small reactors underground is both safer and cheaper. Others have their doubts.

Burying an atom.
Heatmap Illustration/Getty Images

In 1981, two years after the accident at Three Mile Island sent fears over the potential risks of atomic energy skyrocketing, Westinghouse looked into what it would take to build a reactor 2,100 feet underground, insulating its radioactive material in an envelope of dirt. The United States’ leading reactor developer wasn’t responsible for the plant that partially melted down in Pennsylvania, but the company was grappling with new regulations that came as a result of the incident. The concept went nowhere.

More than a decade later, the esteemed nuclear physicist Edward Teller resurfaced the idea in a 1995 paper that once again attracted little actual interest from the industry — that is, until 2006, when Lowell Wood, a physicist at the Lawrence Livermore National Laboratory, proposed building an underground reactor to Bill Gates, who considered but ultimately abandoned the design at his nuclear startup, TerraPower.

Keep reading...Show less
Green
AM Briefing

AM Briefing: Cheap Crude

On energy efficiency rules, Chinese nuclear, and Japan’s first offshore wind

An oil field.
Heatmap Illustration/Getty Images

Current conditions: Warm air headed northward up the East Coast is set to collide with cold air headed southward over the Great Lakes and Northeast, bringing snowfall followed by higher temperatures later in the week • A cold front is stirring up a dense fog in northwest India • Unusually frigid Arctic air in Europe is causing temperatures across northwest Africa to plunge to double-digit degrees below seasonal norms, with Algiers at just over 50 degrees Fahrenheit this week.


THE TOP FIVE

1. Crude prices fell in 2025 amid oversupply, complicating Venezuela’s future

A chart showing average monthly spot prices for Brent crude oil throughout 2025.EIA

Keep reading...Show less
Blue
Podcast

Why Trump’s Oil Imperialism Might Be a Tough Sell for Actual Oil Companies

Rob talks about the removal of Venezuela’s Nicolás Maduro with Commodity Context’s Rory Johnston.

Pete Hegseth, John Ratcliffe, and Donald Trump.
Heatmap Illustration/Getty Images

Over the weekend, the U.S. military entered Venezuela and captured its president, Nicolás Maduro, and his wife. Maduro will now face drug and gun charges in New York, and some members of the Trump administration have described the operation as a law enforcement mission.

President Donald Trump has taken a different tack. He has justified the operation by asserting that America is going to “take over” Venezuela’s oil reserves, even suggesting that oil companies might foot the bill for the broader occupation and rebuilding effort. Trump officials have told oil companies that the U.S. might not help them recover lost assets unless they fund the American effort now, according to Politico.

Keep reading...Show less