The interior of a Ford F-150 Lightning, an electric truck, photographed at Town and Country Ford in Madison, Tenn. (Photo: John Partipilo)
Tennessee is among five states to receive multi-million-dollar awards to re-tool and upgrade automotive facilities to serve the growing electric vehicle market.
The U.S. Department of Energy is partnering with five states flagged for their “significant automotive workforces” to provide grants to small- and medium-sized suppliers to “bolster local manufacturing capacity serving the electric, hybrid, or fuel cell vehicle supply chains and retain good-paying jobs in these states,” according to a news release.
The Tennessee Department of Environment and Conservation will receive more than $5.5 million through the Domestic Automotive Manufacturing Conversion Grants program. Tennessee will work with industry representatives and other stakeholders to determine how eligible manufacturers will be selected to receive funding.
Other states to receive funding include:
- Michigan: $22.7 million
- Indiana: $10.8 million
- Kentucky: $6 million
- Illinois: $5 million
The money is part of a $1.7 billion Inflation Reduction Act investment meant to convert closed or at-risk auto manufacturing and assembly facilities to those able to manufacture electric vehicles and parts in Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia.
President Joe Biden’s administration is rapidly allocating remaining Inflation Reduction Act funds as the clock ticks down to President-elect Donald Trump’s inauguration. Trump has called for unspent IRA funds to be rescinded as part of his budget-cutting agenda.
Tennessee’s electric vehicle and battery industries have expanded significantly over the last several years, though this growth has seen recent turbulence in the form of production delays and layoffs. Manufacturing plants like Ford’s BlueOval City and the BlueOval SK battery plant in Haywood County have benefited from federal loans under the IRA.
Applicants for the Domestic Automotive Manufacturing Conversion Grants must undergo a negotiation process with the Department of Energy to receive funding, and the money can be rescinded at any time until the negotiation is complete.
YOU MAKE OUR WORK POSSIBLE.