The U.S. Department of Energy (DOE) has announced $50 million in grants to assist small and medium-sized manufacturers in six states as they transition to the electric vehicle (EV) supply chain. The funding is aimed at preserving well-paying, unionized jobs in traditional automotive communities as the industry shifts toward e-mobility.
The states of Michigan, Ohio, Indiana, Kentucky, Tennessee, and Illinois have qualified for the grants, which are part of a broader $2 billion initiative funded by the Inflation Reduction Act. The program is coordinated by the DOEās Office of Manufacturing and Energy Supply Chains (MESC) and is designed to support companies that are preparing to produce components for electric, hybrid, or fuel cell vehicles.
āUnder President Biden and Vice President Harrisā leadership, Americaās auto communities and the workforces they support finally have the tools they need to compete and thrive in the 21st century clean energy economy,ā said U.S. Secretary of Energy Jennifer M. Granholm in an official statement. āBy helping states and manufacturers navigate the emerging EV manufacturing industry, todayās announcements will help ensure the workforces that defined Americaās auto sector for the last 100 years will have the opportunity to shape the next 100 years.ā
The funding is part of a larger effort to modernize U.S. automobile production and ensure that the workforce in these traditional automotive hubs is prepared for the transition to electric mobility.
To qualify for the grants, states had to meet specific criteria, including having at least 0.5 percent of their workforce employed in the automotive industry and being eligible for at least $4 million in funding. The selected states will use the grants to help local suppliers adapt their manufacturing processes to align with the demands of the EV market.
