Biden Administration Announces $50 Million For USA’s Auto Communities To Boost EV Manufacturing

In a significant move to strengthen America's automotive industry and drive the transition to electric vehicles (EVs), the Biden-Harris Administration has announced a substantial $50 million funding initiative. This investment is set to support small and medium-sized suppliers in six states, helping them adapt their manufacturing capabilities to the EV market.

Funding Overview

This initiative is part of the broader Domestic Automotive Manufacturing Conversion Grant Program, fueled by the Inflation Reduction Act. The funding aims to revitalize traditional auto communities by supporting manufacturers shifting to electric, hybrid, or fuel-cell vehicle production. 

This program shows commitment to preserving high-quality, union jobs and ensuring the future of American auto manufacturing remains robust and competitive.

Eligible States and Funding Amounts

As per the U.S. Department of Energy, The $50 million is allocated to six states with substantial automotive workforces. The breakdown is as follows:

• 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

These funds are designed to help these states adapt their automotive supply chains to the demands of the electric vehicle market.

Application Criteria and Process

Eligibility

To apply for the funding, the following criteria must be met:

1. Eligible Entities: Applicants must be a state, territory, or the District of Columbia.
2. Workforce Requirements: The workforce in the applicant's area must include at least 0.5% employed in the automotive sector.
3. Funding Threshold: Applicants must qualify for at least $4 million in grant funding.

Application Deadline

States interested in applying for this funding must submit their applications by October 15, 2024, at 5:00 PM ET.

Where to Apply

Applications should be submitted through the DOE’s Office of Manufacturing and Energy Supply Chains (MESC). To receive detailed instructions and access the application portal, applicants should visit the DOE MESC website.

Support and Technical Assistance

In addition to the grant funding, the DOE is also rolling out $1.5 million in technical assistance through the Industrial Training and Assessment Center (ITAC) program. This initiative will support three technical assistance teams led by:

• Purdue University Manufacturing Extension Partnership
• Regents of the University of Michigan
• Trustees of the University of Illinois

These teams will develop a Small Supplier EV Transition Playbook to assist manufacturers in transitioning to EV production. This playbook will provide valuable guidance and strategies for adapting business models to meet the needs of the growing EV market.

Focus on Clean Energy and Workforce Diversity

This initiative aligns with the Federal administration’s Justice40 Initiative, which aims to direct 40% of the benefits of federal investments in clean energy and climate initiatives to disadvantaged communities. The program also emphasizes creating a diverse and inclusive workforce, prepared to lead the clean energy transition.

Looking Ahead

The $50 million investment represents a significant step in transforming America's automotive industry. By supporting the adaptation of manufacturing facilities and fostering the development of new technologies, this funding will help ensure that American auto communities continue to thrive in the 21st-century clean energy economy.

For more information on how to apply or to get involved, visit the DOE Office of Manufacturing and Energy Supply Chains.