The Biden-Harris Administration has announced a $50 million investment to support small- and medium-sized manufacturers in six states with significant automotive workforces. This initiative aims to help these suppliers adapt their manufacturing facilities for the electric vehicle (EV) supply chain, maintaining union jobs in traditional auto communities. The funding is part of the Department of Energy's (DOE) $2 billion Domestic Automotive Manufacturing Conversion Grant program, funded by the Inflation Reduction Act.
President Joe Biden and Vice President Kamala Harris are committed to revitalizing U.S. manufacturing communities while empowering workers to benefit from the clean energy future. This announcement is expected to create and retain hundreds of union jobs, supporting American auto communities that have historically driven the nation's economy.
"Under President Biden and Vice President Harris’ leadership, America’s auto communities and the workforces they support finally have the tools they need to compete and thrive in the 21st century clean energy economy," said U.S. Secretary of Energy Jennifer M. Granholm. "By helping states and manufacturers navigate the emerging EV manufacturing industry, today’s announcements will help ensure the workforces that defined America’s auto sector for the last 100 years will have the opportunity to shape the next 100 years."
The state allocations follow an April 2024 Request for Information seeking input on state-federal partnerships that could enable federal funding for automotive suppliers transitioning to serve electric, hybrid, or fuel cell vehicle supply chains. Eligible grantees must be a state, territory, or the District of Columbia with at least 0.5% of its workforce in the automotive sector and qualify for at least $4 million in grant funding.
The eligible states are:
- Michigan: $18,406,420.45
- Ohio: $9,373,236.32
- Indiana: $8,770,249.81
- Kentucky: $4,876,458.57
- Tennessee: $4,513,688.68
- Illinois: $4,059,946.17
Applications are due by October 15, 2024.
Additionally, DOE is announcing $1.5 million in selections across three teams under the newly expanded Industrial Training and Assessment Center (ITAC) program. These teams—led by Purdue University Manufacturing Extension Partnership; Regents of the University of Michigan; and Trustees of the University of Illinois—will develop a Small Supplier EV Transition Playbook with Argonne National Laboratory.
These programs advance President Biden’s Justice40 Initiative aiming for 40 percent of certain federal investments' benefits to flow to disadvantaged communities marginalized by underinvestment and pollution.
DOE’s Office of Manufacturing and Energy Supply Chains (MESC) will administer both funding programs.
