U.S. Vice President Kamala Harris traveled to Detroit on May 6 to announce a $100 million investment in workforce development and industrial assessment programming, as well as investments for small and medium-sized automotive manufacturers that will allow them to upgrade their facilities for electric vehicle (EV) production and strengthen the EV supply chain.
Over the last several months, MichAuto has hosted a series of convenings to bring together members of the White House’s National Economic Council, the Office of Management and Budget, and State-level policymakers and industry — including the Labor and Economic Opportunity Office, the Michigan Economic Development Corporation, and MichAuto investors BorgWarner, Ford Motor Company, LG Energy Solution, Macomb Community College, Our Next Energy, and Stellantis. These conversations helped inform the announcements made today, which include the establishment of programming and grants to upgrade small and medium-sized facilities in Michigan to support EV and battery supply chain manufacturing throughout the industry transition.
“The Department of Energy (DOE) will design the $50 million grant program to support the needs of Michigan automotive suppliers. According to the Center for Automotive Research, Michigan is home to over 1,000 independent automotive suppliers, and 140 of these suppliers and over 45,000 of their workers may need to retool their facilities and convert from making ICE vehicles or components to EVs or components,” said Lt. Gov. Garlin Gilchrist II in a statement. “The new initiative will help develop a domestic, diversified EV supply chain, retain high-quality, good-paying jobs, and support the Administration’s goal of having 50% of all new vehicle sales be electric by 2030. DOE issued a Request for Information last month seeking input on the proposed fund.” Applications are not yet open for this fund.
In addition to this, the Department of Energy is setting aside up to $50 million of its Industrial Assessments Center Implementation Grants Program to help auto suppliers kickstart manufacturing diversification and conversion projects. Specifically, this program, which was funded by U.S. President Joe Biden’s Bipartisan Infrastructure Law and is covered under his Justice40 Initiative, provides grants of up to $300,000 to entities that have received an Industrial Assessment Center assessment to improve their facilities’ energy and material efficiency, cybersecurity, or productivity, or reduce the greenhouse gas emissions. Learn more and apply by July 1.
This rollout follows President Biden’s announcement of the Michigan EV Workforce Hub earlier this month. Workforce Hubs are place-based initiatives focused on partnerships for job training to ensure all Americans can access good jobs. Federal agencies will also work together to create a technical assistance network for the auto supply chain and collaborate on a resource guide for auto manufacturers looking to transition into production for the EV supply chain.
Through its convening and advocacy efforts, MichAuto will continue to work with policymakers to strengthen the automotive industry, protecting and growing jobs and investment here in Michigan in this dynamic time of change and transition.
MichAuto is monitoring this topic and continue to update this post as new information is available.