Exclusive: Biden channels $50 million to help auto suppliers on EVs
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The Energy Department is steering around $50 million into six states to help small- and mid-sized auto suppliers convert facilities to serve EV value chains.
Why it matters: The money for states with large auto workforces is the latest of many White House financial carrots to help the industry go electric.
Michigan, a critical swing state, is getting the largest share. But money is flowing to several very red states, too.
- It's an example of what backers hope makes the Inflation Reduction Act durable — the billions of dollars flowing into GOP-leaning states and congressional districts.
Driving the news: DOE on Thursday is announcing the eligible states and amounts, which enables specific applications to start flowing in.
- Michigan: $18.4 million
- Ohio: $9.4 million
- Indiana: $8.8 million
- Kentucky: $4.9 million
- Tennessee: $4.5 million
- Illinois: $4.1 million
The big picture: Smaller and mid-sized firms are the bulk of U.S. manufacturers, and these suppliers are especially important to the auto industry's evolution, according to DOE.
- The money comes from the 2022 climate law, and it's under DOE's Office of Manufacturing and Energy Supply Chains.
- It launched in 2022 as part of the department's work to implement the big 2021 infrastructure law.
"By helping states and manufacturers navigate the emerging EV manufacturing industry, today's announcements will help ensure the workforces that defined America's auto sector for the last 100 years will have the opportunity to shape the next 100 years," Energy Secretary Jennifer Granholm said in a statement.
State of play: The money could be used for things such as a high-tonnage press that makes EV components, DOE tells Axios.
- Another example: work on marketing and sales contacts to meet the needs of the EV market.
- It's unclear how many projects the money will support, which depends on state-level implementation. But DOE offered a ballpark estimate of up to 25 conversions.
- This will help create and retain hundreds of well-paying union jobs, the department claimed.
Catch up quick: It comes a month after DOE announced $1.7 billion for large automakers and suppliers to convert at-risk or shuttered plants to serve the EV market.
- Overall, the White House is using money — think consumer subsidies and industry aid — and regulations to promote EV sales and domestic projects.
- The White House goal is EVs reaching 50% of passenger vehicle sales by 2030, while EPA rules seek even higher levels thereafter.
The intrigue: Under DOE's criteria, eligible states for the latest funding need an auto sector that's at least 0.5% of its workforce.
What we're watching: Whether the attempt to fuse climate policy and industrial policy bears political fruit.
