Department of Energy Awards $18 Million to Michigan to Help Small Suppliers Modernize Their Manufacturing Capabilities

Funding further positions Michigan as a leader in clean energy, ensures state remains leader in automotive industry

LANSING, Mich.—Governor Whitmer today announced Michigan will receive $18 million from the Department of Energy (DOE) to help small- and medium-sized automotive companies modernize their capabilities to manufacture electric vehicles. Michigan’s funding accounts for over one-third of the $50 million grant program, which was created in direct response to a proposal submitted by the Department of Labor & Economic Opportunity (LEO) last year recommending DOE create a program for small suppliers and medium-sized auto suppliers. This investment allows Michigan to develop a domestic and diversified EV supply chain, retain high-quality, good-paying jobs, meet the goals of the MI Healthy Climate Plan and support the Biden-Harris administration’s goal of having 50% of all new vehicle sales be electric by 2030.

“Michigan’s automotive companies of all sizes drive our economy and create good-paying, high-skilled jobs,” said Governor Whitmer. “Thanks to Michigan’s leadership and the partnership of the Biden-Harris administration, this new grant program will support suppliers up and down the automotive supply chain, boost manufacturing, and create an economy where every family can thrive. Let’s keep working together to build the future and get things done.”

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. The $18 million in funding will further position Michigan as a leader in clean energy jobs and manufacturing and ensure the state remains a leader in the automotive industry.

“The next generation of vehicles should be built by American companies and American workers, so it’s great to see the funding announced today for small and medium-sized Michigan manufacturers,” said U.S. Congresswoman Elissa Slotkin. “This funding will ensure these companies are well-equipped to build new, advanced electric vehicles. Whether or not you drive an EV today, or ever care to, there’s no denying they will be a big part of the vehicles of tomorrow. All you have to do is look at Europe and Mexico and see that China is looking to be *the* manufacturer of this next generation of cars. That’s why it’s essential to our economic and national security that electric vehicles, the batteries and components they run on, and other critical products are made in America. The funding announced today will also protect existing jobs, generate new ones, and drive economic growth, so it’s a clear win for Michigan.”

“I’m proud to have helped pass new laws to invest in our auto industry and create good-paying, union jobs in mid-Michigan,” said U.S. Congressman Dan Kildee. “These investments are helping to bring manufacturing jobs back to Michigan and ensure the future of electric vehicles are produced in America, not China. I’m proud to work alongside President Biden, Vice President Harris, and Governor Whitmer to deliver for the people of mid-Michigan.”

“To keep America a global leader in EVs and manufacturing, we must ensure electric vehicles, their batteries, all their components, and their infrastructure are built here at home. This funding will support our auto workers and strengthen our domestic auto industry in the transition to electric vehicles, and make sure we’re maintaining strong labor standards and investing in the communities that have long been supported by auto jobs,” said U.S. Congresswoman Debbie Dingell. “I authored and helped pass the Domestic Manufacturing Conversion Grant Program in the Inflation Reduction Act to ensure auto communities and those who have built their lives on the auto industry are not left behind.”

“Once again, the Biden-Harris administration is showing their commitment to bolstering American manufacturing. Over $18 million will be delivered to Michigan businesses to help them adapt to the transition to EV production, all while maintaining good-paying union jobs. This funding will allow for smaller businesses to innovate in an emerging marketplace, creating economic growth and technological advancements for the future,” said U.S. Congressman Shri Thanedar. “Not only will this money help working families in Michigan, but it is also another major step toward a clean energy future that seeks to minimize the effects of climate change. Decades from now, the people of my community and every American will feel the effects of this historic investment.”  

“Under the leadership of the Biden-Harris Administration and Governor Whitmer, our state is prioritizing clean energy and creating pathways for good-paying jobs, a cleaner environment, and a stronger, more resilient infrastructure,” said Zachary Kolodin, chief infrastructure officer and director of the Michigan Infrastructure Office. “Michigan is an automotive powerhouse and small suppliers are the engine of our success. We’re grateful to the Biden-Harris administration for recognizing these small businesses need support to fully participate in the growing EV sector.”

The DOE, along with the U.S. Department of Labor, has also designated Michigan as an EV Workforce Hub in partnership with LEO to ensure Michigan workers have equitable access to high-quality training, education and services that provide a path to a good career without leaving their community. 

"Ensuring Michiganders and businesses have the tools and resources they need to seize the good-paying clean energy jobs coming to Michigan is a top priority,” said LEO Senior Chief Deputy Director Jonathan Smith. “We're committed to working closely with the Biden-Harris Administration and our partners across the state to make this happen. By fostering collaboration and innovation, we can create equitable opportunities that not only strengthen our economy but also empower our communities to thrive in a cleaner, more sustainable future.”

Michigan Leads on Clean Energy Investments and Jobs

The Bipartisan Infrastructure Law and Inflation Reduction Act, coupled with Governor Whitmer’s historic clean energy legislation, have created an unprecedented opportunity for Michigan to advance a clean energy future. This funding, in tandem with bipartisan economic development tools, is growing the middle class, creating good-paying, in-demand manufacturing jobs, bringing supply chains home, and lowering energy costs for families.

The state continues to take steps to help Michiganders bring home federal funding and take advantage of new good-paying clean energy jobs. Governor Whitmer created the Community & Worker Economic Transition Office, housed under LEO, to develop proactive strategies that help companies and Michiganders take full advantage of the high-tech, high-paying jobs coming to the state. The Governor has also launched mobility-focused workforce and talent initiatives like the EV Jobs Academy and the Mobility Talent Action Team to prepare Michigan’s workforce for future electric vehicle and component manufacturing jobs. She has spearheaded a number of public-private partnerships including REV-Midwest, a five-state regional electric vehicle charging network; the Lake Michigan Circuit, an electric vehicle route around Lake Michigan with electric vehicle chargers in state parks; and pioneering projects like CAVNUE, a corridor for autonomous vehicle testing, and a road that charges electric vehicles wirelessly while they are moving.

“Michigan has been a leader in addressing the needs of small suppliers, recognizing the vital role they play in the growth and sustainability of our economy,” said Motor & Equipment Manufacturers Association (MEMA), The Vehicle Suppliers Association Executive Vice President of Government Affairs Ann Wilson. “The state’s commitment to fostering innovation and supporting our industry is unparalleled and we are fortunate to have Governor Whitmer and her team as a champion for our industry, advocating for policies that support high-paying jobs. Together, we are paving the way for a thriving industry that will benefit generations to come.”

A new report from Climate Power shows Michigan continues to be a national leader in clean energy and electric vehicle manufacturing. The 2023 Clean Jobs America Report stated that clean energy businesses in Michigan added more than 5,400 workers in 2022 and now employ 123,983 Michiganders. According to the World Resource Institute, by the year 2040, the state could create 41,000 new jobs as it advances electric vehicle manufacturing and builds out of renewable energy, like solar and wind.