Electric vehicles receive another funding boost from Department of Energy

As part of President Biden’s Investing in America agenda, the U.S. Department of Energy (DOE) announced $70.8 million to support federal partnerships with state and local governments to support small- and medium-sized manufacturers (SMMs) across the automotive, battery recycling, and smart manufacturing sectors. The projects, selected by the Office of Manufacturing and Energy Supply Chains (MESC), will help SMMs upgrade manufacturing facilities to support advanced vehicles, increase the efficiency of battery recycling programs, and support state-level efforts to modernize their manufacturing base. The selections help ensure benefits of certain federal investments in climate, clean energy, and other areas flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.

“States and localities will guide America’s position as a leader in advancing a global clean energy transition, and the Biden-Harris Administration is ensuring they have the tools they need to succeed,” says U.S. Secretary of Energy Jennifer M. Granholm. “The projects announced today cement this Administration’s state-based efforts to support the nation’s auto workforce and communities, all while strengthening domestic manufacturing and bolstering our energy security.”

Retooling vehicle manufacturing facilities
Five states with significant automotive workforces have been selected to receive $50 million from the Inflation Reduction Act to invest in upgrading auto facilities to serve growing vehicle markets. States will collaborate with industry and stakeholders to determine needs and approaches to select SMMs to receive funding. Projects will bolster local manufacturing capacity serving the electric, hybrid, or fuel cell vehicle supply chains and retain good paying jobs in these states. This funding is made possible by the Department’s $2 billion Domestic Automotive Manufacturing Conversion Grant program.

The states selected for awards and their allocations are:

• Michigan: $22,653,072
• Indiana: $10,793,685
• Kentucky: $6,001,534
• Tennessee: $5,555,067
• Illinois: $4,996,639

Increasing battery recycling
Seven states and local governments were also selected for negotiation of award to receive $11.5 million in Bipartisan Infrastructure Law funds as part of the second round of MESC’s State and Local Battery Recycling program. These selections will work closely with state and local governments to make battery recycling more accessible for consumers, reducing waste and improving the nation’s battery recycling landscape.

• Tennessee: Department of Environment and Conservation
• Michigan: Department of Environment, Great Lakes and Energy
• Nevada: Washoe County
• New York: Erie County
• Wisconsin: Department of Natural Resources
• Iowa: Dubuque Metropolitan Area Solid Waste Agency
• Indiana: Allen County 

Accelerating smart manufacturing
Five states were also selected for negotiation of award to receive $9.3 million in funding from the Bipartisan Infrastructure Law as part of the second round of the State Manufacturing Leadership Program. Under the State Manufacturing Leadership Program, DOE is partnering with states to establish programs that accelerate the adoption of smart manufacturing and high-performance computing technologies across SMMs. These new selections will build on the twelve round 1 awards and expand SMMs access to beneficial resources such as technical assistance, training, facility assessments, apprenticeships, and financial assistance.

“Smart manufacturing” refers to the use of emerging and advanced technologies to increase the efficiency of traditional manufacturing processes. By adopting smart manufacturing technologies, small- and medium-sized manufacturing firms can lower costs, increase energy efficiency and performance, reduce material demand, and improve product quality.

• Illinois: Smart Manufacturing Lighthouse Program (SMLP) 
• Michigan: Project DIAMOnD Statewide Expansion: Distributed, Independent, Agile, Manufacturing On Demand 
• Oregon: Oregon Smart Manufacturing Initiative (OSMI) 
• Tennessee: Tennessee Partnership for Smart Manufacturing (TPSM) 
• Virginia: Virginia Smart Manufacturing Accelerator 2 (VSMA 2)

Selection for award negotiations is not a commitment by DOE to issue an award or provide funding. Before funding is issued, DOE and the applicants will undergo a negotiation process, and DOE will complete environmental review. DOE may cancel negotiations and rescind the selection for any reason during that time.