DOE allocates $70.8 million for manufacturing improvements focused on vehicles, batteries

December 4, 2024

The U.S. Department of Energy (DOE) has announced $70.8 million for state and local governments to assist small- and medium-sized manufacturers (SMMs). Chosen by the Office of Manufacturing and Energy Supply Chains (MESC), these projects look to help SMMs improve their facilities for advanced vehicle production, make the recycling of batteries more efficient and help states modernize their manufacturing systems. 

“States and localities will guide America’s position as a leader in advancing a global clean energy transition,” Energy Secretary Jennifer Granholm said. These partnerships “support the nation’s auto workforce and communities, all while strengthening domestic manufacturing and bolstering our energy security.”  

Vehicle production 

Five states with a large automotive presence will receive $50 million from the Inflation Reduction Act for upgrades to auto facilities that expand vehicle markets. These states will work with industry partners to identify priorities and decide which SMMs receive the funds.  

The projects are designed to strengthen local manufacturing for electric, hybrid and fuel-cell vehicle supply chains while protecting well-paying jobs. This funding comes from the Department of Energy’s $2 billion Domestic Automotive Manufacturing Conversion Grant program. 

The selected states and their funding amounts are: 

  • Michigan: $22.7 million. 
  • Indiana: $10.8 million. 
  • Kentucky: $6 million. 
  • Tennessee: $5.6 million. 
  • Illinois: $5 million. 

Battery recycling 

Seven states and local governments were also selected for negotiation of awards to receive $11.5 million in Bipartisan Infrastructure Law (BIL) funds as part of the second round of MESC’s State and Local Battery Recycling program. These selections will work closely with state and local governments to make battery recycling more accessible for consumers: 

  • Tennessee: Department of Environment and Conservation. 
  • Michigan: Department of Environment, Great Lakes and Energy. 
  • Nevada: Washoe County. 
  • New York: Erie County. 
  • Wisconsin: Department of Natural Resources. 
  • Iowa: Dubuque Metropolitan Area Solid Waste Agency. 
  • Indiana: Allen County. 

Smart manufacturing 

Five states have been chosen to negotiate awards totaling $9.3 million in funding through the BIL as part of the second round of the State Manufacturing Leadership Program. This program partners the DOE with states to promote the use of smart manufacturing and high-performance computing technologies among SMMs.  

These new projects will build on the 12 awards from the first round, providing SMMs with technical support, training, facility evaluations, apprenticeships and financing. 

States and programs selected for this round are: 

  • Illinois: Smart Manufacturing Lighthouse Program. 
  • Michigan: Project DIAMOnD Statewide Expansion: Distributed, Independent, Agile, Manufacturing On Demand. 
  • Oregon: Oregon Smart Manufacturing Initiative. 
  • Tennessee: Tennessee Partnership for Smart Manufacturing. 
  • Virginia: Virginia Smart Manufacturing Accelerator 2. 

For all programs, being selected for award negotiations does not guarantee that the DOE will provide funding or issue an award. Before funding is finalized, the DOE and applicants will engage in a negotiation process, and the DOE will conduct an environmental review. 


Photo courtesy Marek Slusarczyk

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