This FOA seeks applications to convert manufacturing facilities in ways that expand domestic production capability of electrified vehicles, as well as related components and materials, in the United States.

IRA section 50143 appropriated $2 billion to provide grants for domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles, in accordance with section 712 of the Energy Policy Act of 2005. That section established the domestic manufacturing conversion grant program to provide grants and loan guarantees to clean vehicle manufacturers and suppliers, including component manufacturers.

Section 712 states that “priority shall be given to the refurbishment and retooling of manufacturing facilities that have recently ceased operation or will cease operation in the near future.” DOE will prioritize entities that will convert, expand, or retool facilities while remaining in the same area as an existing production facility or a facility that has recently ceased operations. This could include projects, such as:

• Projects involving conversion, of a whole facility or partial facility (such as one production line), to either vehicle manufacturing facilities or component manufacturing facilities supporting the domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles are eligible.
• Facility conversions involving new facility greenfield construction if the project remains in the same site or the same area as the existing production facility to be converted, e.g. within reasonable commuting distance of the existing facility.

Applicants will have the opportunity to provide evidence that the proposed facility producing or supporting internal combustion engine vehicles for retooling and/or refurbishment has recently ceased operation or faces risk that it will cease operation soon. Applicants will also have the opportunity to provide details of their commitment to retaining the current workforce and/or rehiring workers recently laid off. Higher scores will be given to projects that are likely to retain collective bargaining agreements and/or an existing high-quality, high-wage hourly production workforce, such as applicants that currently pay top quartile wages in their industry. Additional compensation benefits, such as health insurance, retirement contributions, and profit sharing should also be noted and can be considered in the evaluation of applicant compensation.

It is anticipated that this FOA will strengthen domestic manufacturing of electrified vehicles of the types listed above—including light, medium, and heavy-duty on-road vehicles—as well as of electric vehicle components. It is also anticipated that this FOA will create, retain, and/or expand high-paying jobs in the automotive industry with the free and fair chance to join a union.

The overall scope of this FOA concerns commercial facilities, including those for vehicle assembly, component assembly, and manufacturing of related parts, with particular attention to communities with facilities that have a long history of supporting automotive vehicles and components, for instance 42 USC 17013 highlights facilities that have been in existence for at least 20 years. Applicants should consider and identify domestic sources of equipment, feedstock, and materials as well as potential downstream domestic customers of their parts or product.

Topic Areas

Topic Area 1: Commercial-scale Assembly or Component Manufacturing Facilities for Electrified Vehicles (Large $: Federal Share between $250,000,000 – $500,000,000)

The objective of this area of interest is to convert commercial-scale assembly or component manufacturing facilities from internal combustion engine (ICE) to electrified vehicles.

Topic Area 2: Commercial-scale Assembly or Component Manufacturing Facilities for Electrified Vehicles (Medium $: Federal Share between $100,000,000 – $249,999,999)

The objective of this area of interest is to convert commercial-scale assembly or component manufacturing facilities from internal combustion engine (ICE) to electrified vehicles.

Topic Area 3: Commercial-scale Assembly or Component Manufacturing Facilities for Electrified Vehicles (Small $: Federal Share between $25,000,000 – $99,999,999)

The objective of this area of interest is to convert commercial scale assembly or component manufacturing facilities from internal combustion engine (ICE) to electrified vehicles.