Federal government invests $50M to help auto suppliers in transition to EVs

The U.S. Department of Energy (DOE) announced a $50 million investment on Thursday, Aug. 15, to assist small- and medium-sized auto suppliers in adapting their manufacturing facilities for electric vehicles (EVs). This initiative spans across six different states. It aims to support suppliers in transitioning from conventional vehicle parts production to those required for the growing EV market.

“Today’s announcement will create and retain hundreds of good-paying, high-quality union jobs and support the American auto communities that have driven the U.S. economy for generations,” the Biden administration said in a statement.

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This funding is part of a broader $2 billion allocation from the Inflation Reduction Act designed to help the U.S. automotive industry shift its manufacturing operations to support the transition to electric vehicles.

“Under President Biden and Vice President Harris’ leadership, America’s auto communities and the workforces they support finally have the tools they need to compete and thrive in the 21st century clean energy economy,” U.S. Secretary of Energy Jennifer Granholm said. “By helping states and manufacturers navigate the emerging EV manufacturing industry, today’s announcements will help ensure the workforces that defined America’s auto sector for the last 100 years will have the opportunity to shape the next 100 years.” 

In addition to the $50 million investment, the DOE also announced $1.5 million in funding to develop a playbook for traditional car suppliers. This resource is intended to guide companies that are considering entering the EV market, providing them with the information and strategies needed to successfully make the transition.