Supplier Conversion Grant Program

The Michigan Supplier Conversion Grant Program, managed by the Community & Worker Economic Transition Office under the Michigan Department of Labor & Economic Opportunity (LEO), aims to support small- and medium-sized automotive manufacturers in the state as they transition from producing parts for internal combustion engine (ICE) vehicles to components for electric vehicles (EVs). With a total allocation of $31.8 million in combined federal and state funds, the program addresses economic transition and supply chain resilience by providing financial support for retooling and technology adoption. Eligible applicants are domestic entities located in Michigan that manufacture products, components, or materials for ICE vehicles. Applicants must either have fewer than 1,500 employees overall or operate the project site with no more than 500 employees. Projects must focus on converting production to serve the EV supply chain and must not begin prior to grant approval. Ineligible projects include those involving unrelated facility upgrades or those not essential to company operations. Funding is distributed as reimbursement and may cover costs related to fixed assets, equipment, technology, and workforce retraining—provided the latter is connected to capital investments. All applicants must provide matching funds. While LEO retains flexibility to reduce match requirements below 50% depending on company size and need, the expectation is that applicants can substantiate the availability of their contribution. The state anticipates making between 10 and 30 awards, depending on demand and project sizes. All funded projects must be completed with final reimbursement submissions made no later than December 31, 2029. Applicants are strongly encouraged to submit a Notice of Intent (NOI) by November 10, 2025. The NOI collects baseline data about the business, proposed project, and technical assistance needs. Although not mandatory, submitting a strong NOI can connect companies with technical assistance from designated partners such as the Michigan Manufacturing Technology Center, the Centrepolis Accelerator at Lawrence Technological University, and others. This assistance helps ensure proposals meet the program’s technical, financial, and community impact criteria. After NOI submission, a formal Request for Proposals (RFP) will be released with instructions for submitting full applications through the EGrAMS platform. Selected applicants will enter into an agreement with LEO, with funds disbursed upon completion and proof of spending. Quarterly reporting is required throughout the project lifecycle. Projects will be evaluated on technology innovation, job quality, operational capacity, and alignment with Michigan’s EV manufacturing goals.

Submitting NOI may unlock free technical assistance. Do not begin project before approval.