$100M for Automotive Suppliers to Transition to EV Production, Improve Energy and Cyber Infrastructures

The Biden administration has launched two programs to provide more than $100 million to help small and medium-sized (SME) automotive suppliers expand their factories, transition to EV production, improve their energy efficiency and cybersecurity, and reduce greenhouse gas emissions.

The Department of Energy (DOE) has set aside $50 million from its Automotive Conversion Grants Program to help suppliers of parts for internal combustion engine (ICE) vehicles transition to making parts for electric vehicles. Another $50 million is available through the DOE Industrial Assessments Center Implementation Grants Program to kickstart manufacturing diversification and conversion projects. The goal is to help companies improve their factories’ cybersecurity, energy and supply efficiency, and emissions reduction.

$50m from the Department of Energy Automotive Conversion Grants Program

The Office of Manufacturing and Energy Supply Chains is currently working on a program for Automotive Conversion Grant funding. It is seeking public input on current and/or new potential state-federal partnerships that could enable federal funding to reach automotive SMEs embarking on the transition to serve the electric, hybrid, or fuel cell vehicle supply chains. Input will be accepted electronically as an attachment to RFI-DE-FOA-0003360@netl.doe.gov no later than 5:00 pm (ET) on May 20, 2024.

This program's funding will focus on helping SMEs convert from manufacturing internal combustion engine parts to parts for the EV supply chain. This funding will maintain the Domestic Conversion Grant’s emphasis on supporting retooling to keep good-paying union jobs in the same communities as automakers and auto suppliers transition to electric vehicle manufacturing in the U.S.

**The application period for this program is not open, but we expect to have more information once the RFI period has expired.

$50m from the Department of Energy Industrial Assessments Center Implementation Grants Program

This program is tied to recommendations made during Industrial Assessment Centers (IAC) assessments and/or DOE Combined Heat and Power Technical Assistance Partnership (CHP TAP) assessments since 2018 or equivalent assessments since 2021. ENERGYWERX, the partnership intermediary to the DOE, has provided a list of third-party assessors deemed as IAC-equivalent.

In addition to having an IAC or equivalent assessment, eligible companies must meet all three of the criteria of a small and medium-sized manufacturer (SME), which include:

• Operating one of the following types of companies:
  • NAICS Code 31-33 (Manufacturing)
  • NAICS Code 1114 (Controlled environment agriculture)
  • NAICS Code 22131-22132 (Water supply systems and sewage treatment facilities)
• Annual gross sales of less than $100 million in the most recent fiscal year, or the year the assessment was completed (if different)
• Energy bills between $100,000 and $3.5 million in the most recent fiscal year, or the year the assessment was completed (if different)
• Employ less than 500 employees at the assessed plant site in the most recently completed fiscal year OR the year in which the assessment was completed (if different)

Projects eligible for the funding must be listed in the relevant assessment report as a recommendation, have a minimum total implementation cost of $10,000, and cannot be a project already in progress.

The program will operate on a rolling basis as long as funds are available. The application period is open now, and the deadline is July 1, 2024. SMMs can apply by visiting: https://www.energywerx.org/opportunities/iacimplementationgrants.

Please fill out the form on this page to speak with a member of our National Manufacturing Practice regarding either of these funding programs.

05/20/2024