Harley-Davidson to receive $89M federal funding for electric motorcycles

Harley-Davidson, Wisconsin’s iconic motorcycle maker, will receive an $89 million grant to expand a manufacturing plant in Pennsylvania for electric motorcycle production.

The Biden Administration announced the award last week. It’s part of a $1.7 billion federal investment, funded by the Inflation Reduction Act, to convert 11 closed or at-risk auto manufacturing facilities in eight states to make electric vehicles or parts for those vehicles.

“This ground-breaking program is central to catalyzing expansion of the industrial capacity to help us meet the president’s climate goals and allow tens of thousands of skilled American workers to participate in the great comeback story of American manufacturing,” said Ali Zaidi, an assistant to the president and a national climate advisor, in a statement.

According to the U.S. Department of Energy, Harley-Davidson will expand a facility in York, Pennsylvania, for EV motorcycle manufacturing by using new paint and assembly equipment. The agency said the Milwaukee-based motorcycle company will retrain more than 1,300 union workers and hire another more than 125 employees. 

As part of the grant, the agency also said Harley-Davidson pledged to make “meaningful investments” in supplemental transportation, day care and mental wellbeing resources to support its workforce.

U.S. Sen. Bob Casey, a Democrat from Pennsylvania, said in a statement demand for electric vehicles is growing stronger, and the federal grants will help ensure American manufacturers can compete on the global stage.

“Harley Davidson is one of America’s iconic manufacturers, and this funding from the Inflation Reduction Act will ensure it will be able to continue leading the global market in the years and decades to come,” Casey said.

Harley-Davidson first unveiled an electric motorcycle, dubbed “LiveWire,” in 2018. Harley launched LiveWire as an electric vehicle division in 2021. LiveWire was then spun-off from Harley into its own company in 2022, becoming the country’s first publicly-traded electric motorcycle maker.

The Department of Energy said Harley-Davidson will work “in coordination” with LiveWire to increase production of EVs and begin commercially producing additional electric motorcycles as part of the federal grant.