Michigan offers $22.6M supplier conversion grants to strengthen auto supply chain

Community & Worker Economic Transition Office issues latest RFP to help small- and medium-sized automotive suppliers invest in new capabilities and support the reshoring of vehicle and auto-parts manufacturing

LANSING, Mich. — The Community and Worker Economic Transition Office is encouraging small- and mid-sized automotive manufacturers to respond to the latest Request for Proposals (RFP) offering funding through the Michigan Supplier Conversion Grant Program so they can receive critical capital needed to adapt to emerging, competitive global markets and bring vehicle and auto-parts production back to Michigan. 

“The Michigan Supplier Conversion Grant Program is another innovative way we’re helping small- and medium-sized manufacturers in Michigan obtain the funding and tools they need to stay competitive in a rapidly changing global market and seize new opportunities to keep automotive manufacturing in our state,” said Community and Worker Economic Transition Office Director Jonathan Smith. “This critical funding helps companies adapt, grow and position themselves for the future."

The Michigan Supplier Conversion Grant Program allocated $22.6 million through federal funding made available by the U.S. Department of Energy for small- and medium-sized automotive manufacturers to retool their facilities to enter qualified vehicle supply chains (like hybrids). Eligible Michigan companies can use these funds for fixed asset investment, machinery and equipment, technology and associated training to support qualified retooling projects.

Giving manufacturers accessible pathways for accessing the funding they need to pivot towards future growth ensures Michigan’s economy remains strong and that our smallest suppliers can adapt to market changes, retain quality jobs and remain part of Michigan’s manufacturing future.

This opportunity is open to domestic businesses located in Michigan who are currently producing parts for internal combustion engine vehicles and who will recapitalize to also produce components for qualified vehicles like hybrids. Eligible applicants must be small or medium-sized automotive manufacturers with fewer than 1,500 employees or manufacturers operating a facility with 500 or fewer employees.

Priority will be given to applicants demonstrating the strategic value of the proposed products, materials or components to Michigan’s electrified vehicle supply chain, as well as whether the jobs created or retained through the project are high-quality jobs.

Applications must be submitted electronically through the LEO EGrAMS website by 3 p.m., April 9. 

View the Michigan Supplier Grant Conversion Program webpage for more information.