DOE Providing $1.7B to Repurpose 11 Shuttered or At-Risk Auto Manufacturing Facilities for EV Production

The US Department of Energy (DOE) has announced $1.7 billion to support the conversion of 11 shuttered or at-risk auto manufacturing and assembly facilities across eight states - Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia - to manufacture electric vehicles and their supply chains as part of President Biden’s Investing in America agenda.

 

The investments will create and retain many good-paying union jobs and support the American auto communities driving the US economy for generations. 

 

“There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry,” said US Secretary of Energy Jennifer M. Granholm. “Even as our competitors invest heavily in electric vehicles, these grants ensure that our automotive industry stays competitive—and does it in the communities and with the workforce that have supported the auto industry for generations.”  

 

The Domestic Auto Manufacturing Conversion Grants program, funded by the Inflation Reduction Act, invests in the domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles. The program aims to expand manufacturing of light-, medium-, and heavy-duty electrified vehicles and components and support commercial facilities for vehicle assembly, component assembly, and related vehicle part manufacturing.  

 

The program also advances President Biden’s Justice40 Initiative, which sets the goal that 40% of the overall benefits of certain federal investments in climate, clean energy, clean transportation, and other areas flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. 

 

The projects selected for the funding will create high-quality jobs in the disadvantaged communities receiving investments. All selectees plan to support legacy autoworkers by partnering with local unions. 

 

Selected projects will provide workers with support, including job and technical training, childcare, retirement benefits, and transportation benefits. The program works with and encourages awardees to engage and collaborate with adjacent disadvantaged communities on education, health, climate, and clean energy. 

 

The selectees under the Domestic Manufacturing Auto Conversion Grants program will negotiate for awards to enable them to manufacture products covering a broad range of the automotive supply chain, including parts for electric motorcycles and school buses, hybrid powertrains, heavy-duty commercial truck batteries, and electric SUVs. 

 

The announcement matches the $177 billion in private sector investment in EV and battery manufacturing encouraged by the President’s Investing in America agenda to date. The program also supports the Biden-Harris Administration’s efforts to strengthen domestic supply chains, support American workers, and strengthen America’s global leadership in manufacturing. 

 

The award selections are subject to negotiations to meet commitments to workers and communities. The DOE will also complete environmental reviews to ensure that the awards are consistent with the Administration’s commitments to clean, environmentally responsible manufacturing and include appropriate mitigation as required. 

 

The selected projects are expected to collectively create over 2,900 high-quality jobs and help ensure the retention of over 15,000 highly skilled union workers across all eleven facilities.  

 

The funding for the Domestic Auto Manufacturing Conversion Grants will be administered by DOE’s Office of Manufacturing and Energy Supply Chains (MESC).