Cummins receives DOE money for historic switch to making electric engines

COLUMBUS, Indiana — A Cummins plant with a long history of producing diesel engines will use federal money to switch to making electric motors and batteries.

The Columbus Engine Plant, known within Cummins as a cornerstone of its operations, is set to undergo a significant transformation. With a $75 million grant from the Department of Energy and an additional $75 million from Cummins, the plant will be renovated to accommodate the production of electric powertrains overseen by Accelera, a Cummins division.

The plant opened in 1926, the oldest of the Columbus-based company’s production facilities. Cummins expects to add 250 full-time jobs at the plant to increase manufacturing capacity by 2027.

The site is one of 11 automotive plants receiving DOE awards worth $1.7 billion from the bipartisan infrastructure bill and the Inflation Reduction Act to convert facilities to produce electric vehicles. David Crane, U.S. Department of Energy undersecretary for infrastructure, said the awards are intended to advance American manufacturing and make the United States independent of foreign countries in critical industries.

The announcement comes nearly seven months after Cummins was fined $1.7 billion for violating the Clean Air Act. The U.S. Department of Justice alleged that Cummins installed emission defeat devices on hundreds of thousands of Dodge Ram truck engines over the past decade, contributing to excess emissions of thousands of tons of nitrogen oxides, a poisonous gas. According to the DOJ, the fine was the largest-ever civil penalty for violating the Clean Air Act.

Crane and Cummins CEO Jennifer Rumsey highlighted the environmental benefits of future production, estimating that the powertrains created at the plant will reduce 104 million metric tons of carbon dioxide by 2030.

“To ensure a zero-emissions future, we must keep innovating,” Rumsey said during a press conference Thursday.

The battery packs displayed at the event were highlighted as capable of powering school and city buses and freight trucks.

Amy Davis, president of Accelera by Cummins, called the plant’s renovation a significant step in the company’s history.

“This is a giant step to a more sustainable transportation industry,” Davis said.

"We are proud of this milestone and to be adding clean tech jobs to develop the workforce and communities of the future.”

The development comes at an inflection point in the transportation industry. Major manufacturers, including Ford and General Motors, have begun pushing toward electrification to reduce their carbon footprint. GM announced plans in 2021 to only sell vehicles without tailpipe emissions by 2035.

The moves come after pressure from consumers and the Biden administration to reduce greenhouse gas emissions to curb climate change. Transportation emissions account for 28% of U.S. greenhouse gas emissions, the most significant contributor.

Tyler Spence is a Pulliam Fellow primarily covering business. He can be contacted at jspence@gannett.com.