Vice President Kamala Harris has announced $100 million in federal grants for automotive suppliers as the White House looks to accelerate the car industry’s transition toward electric vehicles.
Harris’ announcement, posted in a news release, arrives ahead of her Monday visit to Michigan, a hub for automotive manufacturing and a key battleground state for the 2024 presidential election. During her trip, the Vice President is scheduled to meet with Secretary of Energy and Acting Secretary of Labor Jennifer Granholm and Governor Gretchen Whitmer, alongside whom she will provide more details concerning the $100 million investment.
According to Harris’ release, the money will be allocated to small and medium-sized automotive suppliers through two government initiatives, both managed by the Department of Energy with funds provided by the Bipartisan Infrastructure Law and the Inflation Reduction Act. Half will be distributed by the Automotive Conversion Grant program, which aims to help companies upgrade existing ICE-focused factories to support electric vehicle manufacturing. The Industrial Assessments Center Implementation Grants program will award the remaining $50 million to help companies improve “energy and material efficiency, cybersecurity, or productivity, or reduce the greenhouse gas emissions” at their facilities.
As part of the Biden Administration’s efforts to spur electrification, automotive suppliers are also set to receive additional support from the Small Business Administration. Harris is expected to detail this new effort during her visit to Michigan.
The new investments underline the White House’s commitment to the energy transition, which has driven the government to heavily subsidize the car industry’s phase-out of ICE vehicles. While automakers successfully convinced the Biden Administration to pursue electrification at a slower pace earlier this year, the industry is likely to move faster with more federal assistance.
