DOE Finances EV Plant Conversions - Smart Energy Decisions

Distributed Energy Resources, GHG Emissions, Industrial  -  July 12, 2024

DOE Finances EV Plant Conversions

The U.S. Department of Energy (DOE) 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 chain

“There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry,” said U.S. Secretary of Energy Jennifer M. Granholm in a statement. “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 selectees of 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 funding announcement complements the $177 billion in private sector investment in EV and battery manufacturing spurred to date by the President’s Investing in America agenda. 

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 needed. 

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. This program aims to expand manufacturing of light-, medium- and heavy-duty electrified vehicles and components and support commercial facilities, including those for vehicle assembly, component assembly and related vehicle part manufacturing.  

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

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