US government to motivate supplier shift with millions in grants

The US government is providing more than 100 million dollars in subsidies for small and medium-sized automotive suppliers. These grants are intended to enable companies to convert their production to manufacture parts for electric vehicles.

Image: unsplash/Ana Lanza

The US Department of Energy wants to provide 50 million dollars in grants to enable small and medium-sized suppliers to convert their production facilities to manufacture parts for electric vehicles instead of combustion vehicles. An additional $50 million will be provided under the Bipartisan Infrastructure Law to help automotive suppliers improve the energy efficiency, cybersecurity and productivity of their facilities and reduce greenhouse gas emissions.

“The strength of America’s economy is based on the strength of America’s supply chains. We all learned that in the pandemic if it weren’t clear before,” said Vice President Kamala Harris during a visit to Detroit. The investment is intended to help secure supply chains in the USA and preserve jobs in the United States.

In Detroit, Harris also announced a programme in which the Department of Energy will work with the Small Business Administration, the US federal agency that supports small and medium-sized enterprises. The aim is to combine government-backed loans with private capital investment in order to reduce the cost of credit for small and medium-sized manufacturers of automotive parts. It also includes a pilot programme to offer loans to auto parts manufacturers and dealers. The aim is to help companies that have received grants from the Ministry of Energy to train, educate and employ local labour.

The Vehicle Suppliers Association MEMA welcomed the US government’s announcement and emphasised that this will strengthen the domestic automotive industry and ensure its competitiveness in clean vehicles. “This significant investment and comprehensive set of actions announced by Vice President Harris will undoubtedly have a meaningful impact for the sector,” commented Bill Long, President and CEO of MEMA. “This is a clear step in the right direction for our members, empowering them to thrive in the evolving vehicle ecosystem.”


about „US government to motivate supplier shift with millions in grants“

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