US grants more funds to retool small and mid-size conventional auto plants to make EVs, EV components

The US government has announced $50 million to six states possessing significant automotive communities (largely down its central belt) to help their small and medium-sized automotive companies retool their manufacturing plants to produce electric vehicles.

The funds come following a $1.7 billion grant awarded to 11 facilities that were deemed "shuttered or at risk" with a similar mandate: retool to support the EV supply chain.

Michigan, the home of America's traditional auto industry will get the largest amount, at ~$18.5 million. The Center for Automotive Research estimates Michigan is home to more than 1,000 independent automotive suppliers, of which 140 might need to convert their manufacturing facilities to transition into the EV or EV component space.

The funding ties in with America's desire to ensure leadership in the clean mobility space and avoid ceding ground to China. In a statement, US Congresswoman Elissa Slotkin said: "The next generation of vehicles should be built by American companies and American workers, so it's great to see … funding [that] will ensure these companies are well-equipped to build new, advanced electric vehicles. Whether or not you drive an EV today, or ever care to, there's no denying they will be a big part of the vehicles of tomorrow... That's why it's essential to our economic and national security that electric vehicles, the batteries and components they run on, and other critical products are made in America."

The states of Ohio will get ~$9 million each of the planned $50 million outgo, followed by Kentucky, Tennessee and Illinois each getting between $4 million and $5 million.

Furthermore, the US government has provided $1.5 million to three teams of technical assistance providers that support energy assessments and workforce development with the aim of facilitating energy improvements across factories. The three teams --- the Purdue University Manufacturing Extension Partnership, the Regents of the University of Michigan, and the Trustees of the University of Illinois --- have been tasked with creating a playbook for converting traditional engine suppliers to support the EV supply chain.

The funds for both programs will be administered by the US Department of Energy's Office of Manufacturing and Energy Supply Chains.