Supplier Conversion Grant Program

The Michigan Supplier Conversion Grant Program, administered by the Michigan Department of Labor and Economic Opportunity (LEO), provides $31.8 million in funding to assist small and medium-sized manufacturers in transitioning their operations from producing components for internal combustion engine (ICE) vehicles to electric vehicle (EV) production. The initiative is part of a broader effort to modernize the state’s automotive supply chain and maintain its competitiveness in the global market. This funding comes through both federal sources—primarily the U.S. Department of Energy's Domestic Automotive Manufacturing Conversion Grant program—and state support via the Make It in Michigan Competitiveness Fund. The program supports projects that involve facility retooling and investments in fixed assets, machinery, equipment, and workforce retraining, provided that retraining is linked directly to a capital expenditure. Eligible costs include equipment to produce batteries or EV components, advanced technology for domestic EV production, and workforce upskilling critical to the transition. Funding is provided on a reimbursement basis, and projects that began prior to grant approval are ineligible. Notably, grant funds cannot be used for general facility upgrades unrelated to EV production. Eligible applicants must be domestic entities located in Michigan currently producing for the ICE vehicle market. They must be either companies with fewer than 1,500 employees or have 500 or fewer employees at the specific facility undergoing conversion. Projects must demonstrate that retooling is essential to operational continuity. Preference may be given to projects that limit administrative expenses to under 10% of total costs and that present strong job quality and strategic technological relevance. A Notice of Intent (NOI) is strongly encouraged to connect applicants with technical assistance providers such as the Michigan Manufacturing Technology Center and others. While not mandatory, submitting an NOI enables companies to access no-cost assistance for proposal development. The NOI must be submitted by November 10, 2025, at 11:59 p.m. EST, and should include company details, workforce and facility overview, current ICE production, proposed EV project details, estimated budget, and a statement on the project's necessity for business continuity. The full application will be submitted through EGrAMS, and deadlines are to be announced. Projects must be completed, and all reimbursements requested, by December 31, 2029. Applications will be evaluated based on financial viability, project necessity, technological strategy, and the potential to retain or create high-quality jobs. Grants range from $500,000 to $2,000,000, with an anticipated 10 to 30 awards made. Match funding is required, though matching obligations may be reduced for smaller or more vulnerable firms. This initiative exemplifies Michigan's proactive approach to preserving its automotive heritage while supporting a just economic transition for its workforce and businesses amid industry-wide changes.

Prioritize limiting administrative costs to under 10%; ensure retooling necessity is clearly justified; demonstrate job retention or creation; secure technical assistance early