In a significant move aimed at bolstering the electric vehicle (EV) industry, Vice President Kamala Harris announced today the White House’s commitment to freeing up $100 million in funding. The initiative, part of the Vice Presidentâs Economic Opportunity Tour, targets small- and medium-sized auto parts manufacturers, particularly in Michigan, a crucial swing state.
Harris, joined by Michigan Governor Gretchen Whitmer, Secretary of Energy Jennifer Granholm, and Acting Secretary of Labor Julie Su, revealed the plan in Detroit. The funding, split evenly between the Department of Energyâs Automotive Conversion Grants Program and its Implementation Grants Program, seeks to assist suppliers in transitioning from producing parts for internal combustion vehicles to components for EVs.
The White House highlighted the program’s aim to support “retooling to keep good-paying and union jobs in the same communities as automakers and auto suppliers transition to electric vehicle manufacturing here in America.”
This initiative marks a significant step in aligning economic development with environmental goals, promoting the growth of EV infrastructure and reducing carbon emissions.
The funding will also see the Small Business Administration (SBA) providing millions of dollars in private capital to aid suppliers in expanding and diversifying their businesses with DOE assistance. Additionally, the SBA will offer lines of credit and business counseling to small businesses involved in the initiative.
Funding for these programs will be drawn from the Inflation Reduction Act and the Bipartisan Infrastructure Law, reflecting the government’s commitment to supporting sustainable economic growth.
Michigan Department of Labor and Economic Opportunity senior deputy Jonathan Smith expressed optimism about the initiative, stating, “This really feels like one of the first opportunities weâve had to really get out ahead of a problem in a while,” in an interview with The Detroit News.
The announcement comes on the heels of the DOE’s establishment of a training program for battery plant jobs, signaling a broader push by the Biden administration to strengthen the domestic EV industry and create new job opportunities.
