US DOE offers $1.7 bn to retool closed auto plants into EV and component units

The US Department of Energy (DOE) announced $1.7 billion in funding support for auto companies to convert 11 closed or at-risk auto units to manufacture electric vehicles and their related components.

The announcement would benefit auto manufacturing and assembly facilities across eight states — Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia — the DOE said in its release. The list of selected companies and units that can negotiate for grants can be found here.

The fund would come from the Domestic Auto Manufacturing Conversion Grants program, in turn funded by the US Inflation Reduction Act. The program seeks to invest towards US production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles.

It 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.

Jennifer M Granholm, US Secretary of Energy, said 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."

John Podesta, Senior Advisor to the President for International Climate Policy, commented: "The awards from the DOE help … by investing in the future of the auto industry … and tackling the existential threat of climate change by cutting pollution from the transportation sector."

In its release, the DOE mentioned: "The selectees 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 award selections are subject to negotiations to ensure that commitments to workers and communities are met. 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.