Inflation Reduction Act (IRA) Section 50143 Domestic Manufacturing Conversion Grants for Electrified Vehicles: State Partnerships for Small and Medium Sized Manufacturers (SMMs)

The funding opportunity "Domestic Manufacturing Conversion Grants for Electrified Vehicles: State Partnerships for Small and Medium-Sized Manufacturers (SMMs)" (DE-FOA-0003412), administered by the U.S. Department of Energy's Office of Manufacturing and Energy Supply Chains (MESC), is aimed at accelerating the conversion of small and medium manufacturing facilities involved in internal combustion engine (ICE) vehicle production to electric vehicle (EV) manufacturing. This initiative is part of the broader goals under the Inflation Reduction Act (IRA) Section 50143 to support domestic production of clean vehicles and components, with an emphasis on retaining high-quality jobs and ensuring equitable transitions to clean energy. The program specifically provides formula-based grants to states, territories, and the District of Columbia. These grants are non-competitive and must be used by states to make subawards to manufacturers for retooling facilities and retraining workers, helping to preserve and expand jobs in the automotive sector. The focus is on commercial-scale assembly or component manufacturing facilities transitioning from ICE vehicle production to hybrid, plug-in electric, electric drive, or hydrogen fuel cell vehicle production. Eligible applicants must be state entities with a workforce of at least 0.5% in the automotive manufacturing sector and must qualify for a minimum grant of $4 million based on a formula allocation. A total of $50 million in federal funding is available, and states are expected to provide matching funds of at least 50% of the total project costs. The eligible states are listed in Appendix A, which outlines the workforce and allocation figures. This funding is intended to support the conversion of facilities as well as related infrastructure and materials supply chains for EV manufacturing. Applications must be submitted through the Clean Energy Infrastructure eXCHANGE by October 30, 2024. States will need to provide a comprehensive application that includes a work plan, budget, and supporting documentation such as environmental assessments and labor equity plans. Subgrants provided to manufacturers will need to be compliant with "Buy America" provisions, ensuring U.S.-sourced materials and components are prioritized. Additionally, projects must align with the Justice40 Initiative, which seeks to ensure that at least 40% of the benefits from federal investments flow to disadvantaged communities. Key dates for the application process include an expected award negotiation period from November 2024 to January 2025, with awards anticipated in February 2025.