The Department of Energy (DOE) is allocating $100 million to help small- and medium- auto parts manufacturers (SSM) expand or renovate their facilities. The money comes from two grant programs, the Automotive Conversion Grants Program and Industrial Assessments Center Implementation Grants Program.
The Automotive Conversion Grants Program was established by the Inflation Reduction Act (IRA) and will provide $50 million to auto SSMs partnering with states to transition electric vehicle (EV) manufacturing. The DOE recently released a request for information (RFI) to understand how to best serve SSMs that are switching to combustion engine alternatives.
The Industrial Assessments Center Implementation Grants Program, funded by the Bipartisan Infrastructure Law (BIL), will provide $50 million to aid manufacturers in diversification and conversion projects. Entities that have been approved by the Industrial Assessment Centers for enhancing energy and material efficiency, cybersecurity, productivity to reducing greenhouse gas emissions can receive grants up to $300,000.
In addition, the Small Business Administration (SBA) will help auto SSMs with both an existing and new program. Through the programs, SBA can offer financial assistance to businesses with private capital investments and lines of credit.
The Small Business Investment Company (SBIC) program matches companies looking to help fund small businesses with those in need of investment. There are millions of dollars available specifically for EV supply chain, and the DOE is assisting in reducing investment risk with technical expertise.
SBA also plans to launch the Working Capital Pilot Program to offer lines of credit to small businesses including auto SMMs. The program also features business counseling from the SBA.
These grant and funding programs are in addition to the $170 billion in federal investments for EV and battery supply chain manufacturing announced since 2021.
Photo courtesy of the Alabama governor’s office
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