The U.S. Department of Energy (DOE) has unveiled a $50 million grant program aimed at supporting six states with noteworthy automotive workforces in their transition to electric vehicle (EV) manufacturing.

According to the DOE, it is a part of the Biden administration’s Investing in America agenda, which seeks to help small and medium-sized suppliers adapt their plants to serve the growing EV supply chain.

The grants, funded by the Inflation Reduction Act, will be distributed among Michigan, Ohio, Indiana, Kentucky, Tennessee, and Illinois. Michigan will receive the largest share at $18.4 million. Here is the funding breakdown for the other states:

U.S. Secretary of Energy Jennifer M. Granholm expressed the importance of this initiative stating, “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.”

Moreover, the program, coordinated by the DOE’s Office of Manufacturing and Energy Supply Chains (MESC), aims to preserve well-paying, unionized jobs in traditional automotive communities. Eligible companies include those preparing for the transition to electric, hybrid, or fuel-cell vehicles.

This $50 million grant is part of a larger $2 billion funding program for converting U.S. automobile production, financed by the Inflation Reduction Act. To qualify, states needed at least 0.5% of their workforce employed in the automotive landscape and eligibility for at least $4 million in funding.

In addition to the grants, the DOE announced $1.5 million in selections for three teams of technical assistance providers under the expanded Industrial Training and Assessment Center (ITAC) program. These teams will develop a Small Supplier EV Transition Playbook to guide internal combustion engine (ICE) suppliers in transitioning their business models to EV or adjacent markets.

Furthermore, the DOE also recently unveiled a new $43 million funding initiative aimed at propelling research, development, demonstration, and deployment (RDD&D) in critical areas of advanced EV battery technology. As a result, the DOE’s efforts for the EV progression in the nation is well noted.

Read More: U.S. DOE Launches $43 Million Initiative To Further Advance EV Battery Technology

As the initiative aligns with the Biden administration’s goal of EVs reaching 50% of passenger vehicle sales by 2030 and supports the Justice40 Initiative, it represents a major step to reinvigorate American manufacturing with EVs leading the charge. States have until October 15, 2024, to submit their applications for the grants.

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