U.S. Energy Department Announces $1.7 Billion to Retool or Retrofit Auto Manufacturing Facilities for Electric Vehicles

The U.S. Energy Department has announced $1.7 billion to support the renovation of 11 closed or at-risk auto manufacturing facilities across eight states to manufacture electric vehicles and their supply chain. The selected facilities are located in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia. The funding will help create and retain well paying union jobs and support the U.S. auto communities.

The Domestic Manufacturing Auto Conversion Grants Program will assist the beneficiaries of the funding to manufacture products that cover the entire range of the automotive supply chain, including parts for school buses, electric motorcycles, heavy duty commercial truck batteries, hybrid powertrains and electric SUVs. The announcement complements the $177 billion in private sector outlay in electric vehicle and battery manufacturing made by President Biden’s Investing in America agenda. Furthermore, the program reinforces the Biden administration’s effort and initiatives to solidify domestic supply chains, assist U.S. employees and boost the country’s global leadership in manufacturing.

The department will also undertake environmental reviews to ensure that the awards are consistent with the administration’s commitments to environmentally responsible manufacturing, and include mitigation measures as needed. The nominated projects are expected to create over 2,900 new high-quality jobs and help ensure over 15,000 highly skilled union workers are retained.

The program, financed by the 2022 Inflation Reduction Act, provides funding so that there can be investment in the domestic construction of efficient hybrid and other types of electric vehicles, including hydrogen fuel cell electric vehicles. The program’s goal is to enhance the manufacturing of electric vehicles and parts and support commercial facilities, which include vehicle assembly lines, assembling of parts and other associated vehicle part manufacturing. This program is also consistent with President Biden’s Justice40 initiative, which sets the goal that 40 percent of the overall benefits of certain federal investments in climate and clean energy flow to disadvantaged communities.

The financing of the Domestic Manufacturing Auto Conversion Grants Program will be administered by the U.S. Energy Department’s Office of Manufacturing and Energy Supply Chains.