New White House Program Provides Funding to Help Smaller Auto Suppliers Make Transition to EVs

Chris Teague
by Chris Teague

The federal government has pumped billions into EV incentives and charging infrastructure initiatives, and now, it’s automotive suppliers’ turn at the bank. The Biden administration recently announced more than $100 million in funding to help smaller suppliers adapt to the changing automotive world.

Around half of that money comes from the Department of Energy to help internal combustion engine suppliers retool to make EV parts. Another $50 million provides grants of up to $300,000 for the companies to make their factories greener and improve cybersecurity.

Suppliers have been in a tight spot for years as materials and labor costs have skyrocketed. Additionally, while automakers’ production volume has grown since the barren days of the COVID-19 pandemic, they aren’t making cars in the same numbers they did before, reducing revenues for the companies that supply them. Many suppliers also felt the squeeze during last year’s UAW strike, which shut down some of the factories that were making popular vehicle models.

As part of the program, the DOE will also work with the Small Business Administration to provide business coaching and help companies reduce risk across their operations. The SBA will create a pilot program to offer credit lines to small businesses, and the Biden administration will use an existing program to help small suppliers dip into millions in private equity dollars. Those efforts are in addition to a separate fund that aims to assist with workforce and technology training to better equip manufacturing workers as factory lines increasingly shift to building EVs.

[Image: Bok David via Shutterstock]

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Chris Teague
Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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3 of 42 comments
  • Spectator Spectator on May 07, 2024

    Wild to me the US sent like $100B overseas for other peoples wars while we clammer over .1% of that money being used to promote EVs in our country.

    • EBFlex EBFlex on May 08, 2024

      That $100B should have never been sent. They should have spent it here on securing our border.

  • Wjtinfwb Wjtinfwb on May 08, 2024

    No confusion on my end, Ghost. The Government has zero role in job creation outside of the legitimate opportunities' created by Government going about it's responsibilities, namely keeping the American people and territory safe from foreign intrusion. Of course, they're failing epically at that but that's a different topic. The American free enterprise system is what enables job creation. Government's role is to stay out of the way of that system, but they seem incapable of doing so. Oil & Gas exploration is just one example. If a National Job Policy is what you're looking for, there are other countries that will be happy to accept your application for residency.

  • 3-On-The-Tree I don’t think Toyotas going down.
  • ToolGuy Random thoughts (bulleted list because it should work on this page):• Carlos Tavares is a very smart individual.• I get the sense that the western hemisphere portion of Stellantis was even more messed up than he originally believed (I have no data), which is why the plan (old plan, original plan) has taken longer than expected (longer than I expected).• All the OEMs who have taken a serious look at what is happening with EVs in China have had to take a step back and reassess (oversimplification: they were thinking mostly business-as-usual with some tweaks here and there, and now realize they have bigger issues, much bigger, really big).• You (dear TTAC reader) aren't ready to hear this yet, but the EV thing is a tsunami (the thing has already done the thing, just hasn't reached you yet). I hesitate to even tell you, but it is the truth.
  • ToolGuy ¶ I have kicked around doing an engine rebuild at some point (I never have on an automobile); right now my interest level in that is pretty low, say 2/5.¶ It could be interesting to do an engine swap at some point (also haven't done that), call that 2/5 as well.¶ Building a kit car would be interesting but a big commitment, let's say 1/5 realistically.¶ Frame-up restoration, very little interest, 1/5.¶ I have repainted a vehicle (down to bare metal) and that was interesting/engaging (didn't have the right facilities, but made it work, sort of lol).¶ Taking a vehicle which I like where the ICE has given out and converting it to EV sounds engaging and appealing. Would not do it anytime soon, maybe 3 to 5 years out. Current interest level 4/5.¶ Building my own car (from scratch) would have some significant hurdles. Unless I started my own car company, which might involve other hurdles. 😉
  • Rover Sig "Value" is what people perceive as its worth. What is the worth or value of an EV somebody creates out of a used car? People value different things, but for a vehicle, people generally ascribe worth in terms of reliability, maintainability, safety, appearance and style, utility (payload, range, etc.), convenience, operating cost, projected life, support network, etc. "Value for money" means how much worth would people think it had compared to competing vehicles on the market, in other words, would it be a good deal to buy one, compared to other vehicles one could get? Consider what price you would have to ask for it, including the parts and labor you put into it, because that would affect the “for the money” part of the “value for money” calculation. An indicator of whether people think an EV-built-in-a-used-car would provide "value for money" is the current level of demand for used cars turned into EVs. Are there a lot of people looking for these on the market? Or would building one just be a hobby? Repairing an existing EV, bringing it back into spec, might create better value for the money. Although demand for EVs is reportedly down recently.
  • ToolGuy Those of you who aren't listening to the TTAC Podcast, you really don't know what you are missing.