The Biden-Harris Administration has announced a significant investment of $1.7 billion to support the conversion of 11 auto manufacturing and assembly facilities across eight states—Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia—to electric vehicle (EV) production. This initiative is part of President Biden’s Investing in America agenda and aims to create and retain thousands of union jobs while supporting American auto communities.
“There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry,” said U.S. Secretary of Energy Jennifer M. Granholm. “Even as our competitors invest heavily in electric vehicles, these grants ensure that our automotive industry stays competitive—and does it in the communities and with the workforce that have supported the auto industry for generations.”
John Podesta, Senior Advisor to the President for International Climate Policy, emphasized the broader goals: “President Biden set out to build a clean energy economy that benefits everyone. Today’s awards from the Department of Energy help bring that vision to life by investing in the future of the auto industry, creating thousands of good-paying union jobs, and tackling the existential threat of climate change by cutting pollution from the transportation sector.”
Ali Zaidi, Assistant to the President and National Climate Advisor, highlighted the program's impact on climate goals: “Today’s announcement from the Department of Energy is a big win for the American people and demonstrates President Biden’s bold vision for how we are choosing to take on the climate crisis: with America’s workers leading the way.”
The Domestic Manufacturing Auto Conversion Grants program will enable selected facilities to manufacture products covering various aspects of the automotive supply chain. These include parts for electric motorcycles and school buses, hybrid powertrains, heavy-duty commercial truck batteries, and electric SUVs. The program complements $177 billion in private sector investment in EV and battery manufacturing spurred by President Biden’s agenda.
Award selections are subject to negotiations ensuring commitments to workers and communities are met. Environmental reviews will also be conducted. If awarded, these projects could create over 2,900 new high-quality jobs while retaining over 15,000 skilled union workers across all eleven facilities.
The program is funded by the Inflation Reduction Act and supports domestic production of efficient hybrid vehicles along with plug-in electric drive and hydrogen fuel cell electric vehicles. It also advances President Biden’s Justice40 Initiative aimed at benefiting disadvantaged communities.
Selection for award negotiations does not guarantee funding; DOE may cancel negotiations at any time during this process.
The funding will be administered by DOE’s Office of Manufacturing and Energy Supply Chains (MESC).
