As electric vehicles continue to gain greater share of the American automotive market, key elements of the industry, like EV charging networks and battery manufacturing, are also expanding to support its growth.

Recognizing the importance of this relationship, the U.S. Department of Energy (DOE) announced major funding that will create jobs and support the industry’s continued expansion.

On July 11, 2024, the DOE announced funding of $1.7 billion to support the conversion of 11 shuttered or at-risk auto manufacturing and assembly facilities across eight states.

The funding is part of President Joe Biden’s Investing in America agenda, which includes multiple bipartisan bills, such as the American Rescue Plan, Bipartisan Infrastructure Law, CHIPS and Science Act and the Inflation Reduction Act, which are providing much-needed funding for American manufacturing.

The Domestic Manufacturing Auto Conversion Grants program provides cost-shared grants supporting the domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive and hydrogen fuel cell electric vehicles. The list of affected states includes Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland and Virginia.

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.

Examples include a battery system assembly plant construction project in Toledo, Ohio, conversion of a transmission plant to electric drive modules in Kokomo, Ind., and conversion of a vehicle manufacturing plant to an electric school bus facility in Fort Valley, Ga., among others.

The DOE estimates that if all the selectees meet the necessary criteria and are awarded funds, their projects would collectively create over 2,900 new high-quality jobs and help ensure over 15,000 highly skilled workers are retained across all 11 facilities.