Biden Administration’s $50m investment to supercharge EV manufacturing in key states

In a major development for the electric vehicle (EV) sector, the U.S. Department of Energy (DOE) has announced a $50 million funding initiative aimed at enhancing the capabilities of small- and medium-sized suppliers in six states with substantial automotive workforces. This funding, part of the Biden-Harris Administration’s Investing in America agenda, is designed to help these suppliers adapt their manufacturing facilities for the growing electric vehicle supply chain. The initiative is a segment of the broader $2 billion Domestic Automotive Manufacturing Conversion Grant program, made possible by the Inflation Reduction Act.

The funding aims to support traditional automotive communities in their transition to the electric vehicle market. It is expected to create and retain hundreds of high-quality, union jobs, ensuring that the regions historically associated with the automotive industry continue to play a crucial role in the evolving landscape. The states selected for this funding include Michigan, Ohio, Indiana, Kentucky, Tennessee, and Illinois, each receiving a portion of the $50 million based on their automotive workforce size and specific needs.

Michigan will receive the largest allocation at $18,406,420.45, reflecting its significant role in the automotive sector. Ohio follows with $9,373,236.32, while Indiana is allocated $8,770,249.81. Kentucky, Tennessee, and Illinois will receive $4,876,458.57, $4,513,688.68, and $4,059,946.17, respectively. States have until October 15, 2024, to submit their applications for these grants.

DOE announces $50 million to support states in adapting automotive manufacturing for electric vehicles, creating high-quality jobs and driving clean energy transition.

In addition to the state grants, the DOE is also investing $1.5 million in three technical assistance teams under the Industrial Training and Assessment Center (ITAC) program. This initiative involves the Purdue University Manufacturing Extension Partnership, the Regents of the University of Michigan, and the Trustees of the University of Illinois. These teams will develop a Small Supplier EV Transition Playbook in collaboration with Argonne National Laboratory. This playbook is intended to assist suppliers of internal combustion engine components in transitioning to electric or related markets, ensuring they can navigate the shift effectively.

The ITAC program aims to enhance the efficiency of small- and medium-sized manufacturers by providing assessments that identify potential upgrades and cost-saving opportunities. This initiative aligns with President Biden’s Justice40 Initiative, which seeks to direct 40 percent of federal investment benefits to disadvantaged communities that have historically been underinvested in and overburdened by pollution.

Jennifer M. Granholm, U.S. Secretary of Energy, emphasised the importance of this funding: “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. 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.”

This substantial investment highlights the administration’s dedication to revitalising American manufacturing while ensuring that the workers and communities that have been the backbone of the automotive industry remain integral to its future. By supporting this transition, the DOE aims to maintain the U.S. as a global leader in manufacturing and ensure that the future of the automobile industry is built by American union workers.