The U.S. Department of Energy (DOE), under the Biden-Harris Administration’s Investing in America agenda, has announced a significant investment to support the transition to electric vehicle (EV) manufacturing. The DOE, through its Office of Manufacturing and Energy Supply Chains (MESC), is allocating $50 million to six states with major automotive workforces. This funding is part of the Department’s $2 billion Domestic Automotive Manufacturing Conversion Grant program, financed by the Inflation Reduction Act.
The investment aims to help small- and medium-sized suppliers adapt their manufacturing facilities for the EV supply chain. By doing so, it will assist in maintaining good-paying, union jobs in traditional auto communities. The states receiving funding are Michigan ($18.4 million), Ohio ($9.4 million), Indiana ($8.8 million), Kentucky ($4.9 million), Tennessee ($4.5 million), and Illinois ($4.1 million). Applications must be submitted by October 15, 2024, at 5:00 pm ET.
Secretary of Energy Jennifer M. Granholm emphasized that this initiative will create and retain hundreds of high-quality union jobs, reinforcing the administration’s commitment to the American auto industry. The funding will support these states in their efforts to navigate the emerging EV manufacturing sector and ensure that American workers remain central to the future of the automobile industry.
In addition to the state allocations, the DOE is also investing $1.5 million in technical assistance through the Industrial Training and Assessment Center (ITAC) program. This funding will support three teams led by Purdue University, the University of Michigan, and the University of Illinois to develop a Small Supplier EV Transition Playbook. This playbook aims to assist internal combustion engine suppliers in adapting their business models to the EV market.
These programs align with President Biden’s Justice40 Initiative, which seeks to ensure that 40% of the benefits from federal investments in climate and clean energy flow to disadvantaged communities. The DOE’s efforts will enhance the clean energy workforce, improve manufacturing efficiency, and support the transition to a sustainable energy future.
