As part of President Biden’s Investing in America agenda, the U.S. Department of Energy (DOE) has announced a $1.7 billion initiative to transform 11 shuttered or at-risk auto manufacturing and assembly facilities across eight states into electric vehicle production hubs. This funding will support facilities in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia, marking a significant step towards revitalizing American manufacturing communities and supporting union jobs.
“These grants ensure our automotive industry stays competitive and supports the communities that have driven the U.S. economy for generations,” said U.S. Secretary of Energy Jennifer M. Granholm. “Even as our competitors invest heavily in electric vehicles, we’re ensuring the U.S. leads the way.”
John Podesta, Senior Advisor to the President for International Climate Policy, highlighted the broader impact: “Today’s awards help bring President Biden’s vision to life by investing in the future of the auto industry, creating thousands of good-paying union jobs, and tackling climate change by cutting transportation pollution.”
The Domestic Manufacturing Auto Conversion Grants program is part of the Biden-Harris Administration’s efforts to bolster domestic supply chains and maintain the U.S. leadership in auto manufacturing. The selected facilities will produce a range of electric vehicle components, including parts for electric motorcycles, school buses, hybrid powertrains, and electric SUVs.
Assistant to the President and National Climate Advisor Ali Zaidi emphasized the program’s importance: “This groundbreaking program is central to catalyzing the expansion of industrial capacity to meet the President’s climate goals and allow skilled American workers to lead the comeback of American manufacturing.”
The initiative also supports the Justice40 Initiative, aiming to ensure 40% of the benefits from federal investments in clean energy flow to disadvantaged communities. Selected projects will create high-quality jobs and provide comprehensive support for workers, including technical training and benefits.
The DOE will negotiate awards to ensure commitments to workers and communities are met, and conduct environmental reviews to ensure the projects align with the Administration’s clean manufacturing goals. The conversion grants are funded by the Inflation Reduction Act and will be administered by the DOE’s Office of Manufacturing and Energy Supply Chains (MESC).
This transformative investment underscores the Administration’s commitment to a sustainable and competitive future for the American auto industry, driven by innovation and the dedication of American workers.
