$50 million to strengthen U.S. auto communities and boost domestic electric vehicle production

Sign up for daily news updates from CleanTechnica by email. Or Follow us on Google News!

---

Investing in America Agenda will encourage collaboration between states and small and medium-sized manufacturers to preserve jobs and repurpose production facilities for the production of electric vehicle components

WASHINGTON, DC — As part of the Biden-Harris administration Investing in America AgendaToday, the U.S. Department of Energy (DOE), through the Office of Manufacturing and Energy Supply Chains (MESC), announced $50 million to six states with significant automotive workforces to help small and mid-sized suppliers adapt manufacturing facilities for the electric vehicle (EV) supply chain, thereby preserving high-paying union jobs in traditional automotive communities. This funding is made possible by the Department’s $2 billion Subsidy program for the conversion of the domestic automotive industryfunded by the Inflation Reduction Act. Today's announcement builds on the Vice President's announcement new actions to support small and medium-sized auto suppliers and reinforce the Biden-Harris administration's ongoing commitment to ensuring that the workers and manufacturers who built the auto industry remain key community anchors as we transition to an electric vehicle future.

President Biden and Vice President Harris are fully committed to reinvesting in and revitalizing our nation’s manufacturing communities while empowering workers to reap the economic benefits of our clean energy future. Today’s announcement will create and retain hundreds of good-paying, high-quality, union jobs and support the American auto communities that have powered the U.S. economy for generations. This investment delivers on the President’s commitment to ensuring that the future of the auto industry is made in America by American union workers, and that the United States remains a global manufacturing power for generations to come.

“Under the leadership of President Biden and Vice President Harris, America’s auto communities and the workforce 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 sector, today’s announcements will help ensure that the workers who have defined America’s auto industry for the past 100 years have the opportunity to shape the next 100.”

Today's announcement on the state allocations follows a Request for information April 2024seeking input from local, state, federal, and non-governmental entities on current and/or new state-federal partnerships that could enable federal funding to reach 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, have a workforce of at least 0.5% in the automotive sector, and be eligible for at least $4 million in grant funding. Under these criteria, six states are eligible:

• 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

States have until October 15, 2024, at 5:00 p.m. ET to submit an application.

Expanding the U.S. Clean Energy Workforce and Improving Manufacturing Efficiency

DOE also announces $1.5 million in selections for three teams of technical assistance providers under the newly expanded Industrial Training and Assessment Center (ITAC) ProgramThe teams, led by the Purdue University Manufacturing Extension Partnership, the Regents of the University of Michigan and the Trustees of the University of Illinois, will help create and refine a Small Supplier EV Transition Playbook, in collaboration with Argonne National Laboratory, to help internal combustion engine suppliers transition their business models to EV or adjacent markets.

The ITAC program promotes a clean energy and manufacturing workforce that represents America’s diversity, and a renewed manufacturing base that is ready to lead the global transition to clean energy. The program provides assessments to small and mid-sized manufacturing companies to identify efficiency upgrades, save costs for manufacturers, and improve the nation’s manufacturing base.

These programs also enhance President Biden's performance. Justice40 initiativewhich sets a target that 40 percent of the total benefits from certain federal investments in climate, clean energy, clean transportation and other areas go to underserved communities that are marginalized by underinvestment and overburdened by pollution.

DOE's Office of Manufacturing and Energy Supply Chains (MESC) will manage funding for both the Domestic Automotive Manufacturing Conversion Grants, including the State Partnerships for SMMs and the ITAC program. Learn more about the MESC mission to accelerate investments in America's energy future to support the reshoring, skilling and scaling of American manufacturing across energy supply chains.

Thanks to Ministry of Energy.