In alignment with President Biden’s Investing in America initiative, the U.S. Department of Energy (DOE) revealed a $1.7 billion funding package to transform 11 automotive manufacturing plants across eight states—Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia—into electric vehicle (EV) production hubs.
This financial support signifies President Biden’s unwavering dedication to revitalize manufacturing communities and support workers vital to America’s middle class. These funds will create and maintain thousands of high-paying union jobs, bolstering the American auto communities that have fueled the nation’s economy for years.
This action upholds the President’s pledge to ensure the auto industry’s future is built in America by union workers, positioning the U.S. at the forefront of the global EV market.
Revitalizing Communities and Supporting Workers
“The most difficult challenge for a manufacturing community is the loss of jobs due to global competition and industry changes,” said U.S. Secretary of Energy Jennifer M. Granholm.
“While international competitors pour resources into electric vehicles, these grants keep our automotive industry competitive and rooted in the communities and workforce that have historically supported it.”
“President Biden’s goal was to build a clean energy economy benefiting all,” stated John Podesta, Senior Advisor to the President for International Climate Policy.
“The DOE’s grants today make that vision a reality by investing in the future of the auto industry, creating thousands of union jobs, and combating climate change by reducing transportation emissions.”
Pushing Climate Goals with American Workers
“This DOE announcement marks a significant triumph for Americans, showcasing President Biden’s bold strategy to tackle the climate crisis with American workers leading the charge,” remarked Ali Zaidi, Assistant to the President and National Climate Advisor.
“This innovative program is essential to expanding industrial capacity to meet the President’s climate targets and allowing thousands of skilled American workers to partake in the revival of American manufacturing.”
Maintaining U.S. Leadership in Auto Manufacturing
The Domestic Manufacturing Auto Conversion Grants program ensures the U.S. remains a world leader in auto manufacturing, driven by experienced communities and workers.
Recipients will negotiate to manufacture a broad array of automotive supply chain products, including parts for electric motorcycles, school buses, hybrid powertrains, heavy-duty truck batteries, and electric SUVs.
This funding announcement complements the $177 billion in private investments in EV and battery manufacturing spurred by the President’s Investing in America agenda, reinforcing efforts to enhance domestic supply chains, support American workers, and sustain global manufacturing leadership.
Commitments to Workers and Environmental Stewardship
The award selections are pending negotiations to ensure commitments to workers and communities are honored. DOE will also complete environmental reviews to align awards with the Administration’s clean manufacturing standards and implement necessary mitigations.
If approved, these projects will create over 2,900 new high-quality jobs and help retain over 15,000 skilled union workers across the 11 facilities.
Project descriptions and a comprehensive list of selections can be accessed here.
Promoting Justice and Equity in Manufacturing
The Domestic Auto Manufacturing Conversion Grants program, funded by the Inflation Reduction Act, promotes the domestic production of efficient hybrid, plug-in hybrid, electric, and hydrogen fuel cell vehicles.
The program aims to expand the production of light-, medium-, and heavy-duty electrified vehicles and components, supporting commercial facilities for vehicle and component assembly.
Justice40 Initiative and Community Impact
This program also advances President Biden’s Justice40 Initiative, ensuring that 40 percent of certain federal investment benefits in climate, clean energy, and transportation reach disadvantaged communities.
The funded projects will generate high-quality jobs in these communities, partnering with local unions to support legacy autoworkers.
They will offer job and technical training, childcare, retirement benefits, and transportation support. The program encourages recipients to engage with and support nearby disadvantaged communities on education, health, climate, and clean energy.
Negotiation and Funding Process
Selection for award negotiations does not guarantee funding. Before disbursing funds, DOE and applicants will negotiate terms, with DOE retaining the right to cancel negotiations and withdraw the selection at any time.
The funding for the Domestic Auto Manufacturing Conversion Grants will be managed by DOE’s Office of Manufacturing and Energy Supply Chains (MESC). Learn more about MESC’s mission to foster investments in America’s energy future, supporting the re-shoring, upskilling, and scaling of U.S. manufacturing across energy supply chains.