As part of President Biden’s Investing in America agenda, the U.S. Department of Energy (DOE) has announced $1.7 billion to support the conversion of 11 shuttered or at-risk auto manufacturing and assembly facilities across eight states – Michigan, Ohio, Pennsylvania, Georgia, Illinois, Indiana, Maryland, and Virginia – to manufacture electric vehicles and their supply chain.

“There is nothing harder to a manufacturing community than to lose jobs to foreign competition and a changing industry,” said U.S. Secretary of Energy Jennifer M. Granholm. “Even as our competitors invest heavily in electric vehicles, these grants ensure that our automotive industry stays competitive—and does it in the communities and with the workforce that have supported the auto industry for generations.”

The administration said its Domestic Manufacturing Auto Conversion Grants program helps ensure that the U.S. continues to lead the world in auto manufacturing and that the selectees will negotiate for awards to enable them to manufacture products covering a broad range of the automotive supply chain, including parts for electric motorcycles and school buses, hybrid powertrains, heavy-duty commercial truck batteries, and electric SUVs. Today’s announcement complements the $177 billion in private sector investment in EV and battery manufacturing spurred to date by the president’s Investing in America agenda, according to the Biden Administration.

The administration said the award selections are subject to negotiations to ensure that commitments to workers and communities are met. DOE will also complete environmental reviews. If awarded, the selected projects would collectively create over 2,900 jobs and help ensure over 15,000 union workers are retained across all eleven facilities, according to the Administration.

The Domestic Auto Manufacturing Conversion Grants program, funded by the Inflation Reduction Act, invests in the domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles. This program aims to expand manufacturing of light-, medium-, and heavy-duty electrified vehicles and components and support commercial facilities including those for vehicle assembly, component assembly, and related vehicle part manufacturing.

The administration said this program also advances President Biden’s Justice40 Initiative, which sets the goal that 40% of the overall benefits of certain federal investments in climate, clean energy, clean transportation, and other areas flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution.

Selection for award negotiations is not a commitment by DOE to issue an award or provide funding. Before funding is issued, DOE and the applicants will undergo a negotiation process, and DOE may cancel negotiations and rescind the selection for any reason during that time.

The funding for the Domestic Auto Manufacturing Conversion Grants will be administered by DOE’s Office of Manufacturing and Energy Supply Chains (MESC).