Tennessee Hybrid Vehicle Manufacturing Conversion Grants
Please note this grant offering is still under development.
TDEC anticipates sharing more details regarding this opportunity in September 2026, with a grant application window opening in December 2026 or January 2027.
Program Overview
The Tennessee Hybrid Vehicle Manufacturing Conversion Grants Program is a competitive subgrant program funded through the Inflation Reduction Act (IRA), Section 50143: Domestic Manufacturing Conversion Grants for Electrified Vehicles.
The U.S. Department of Energy (DOE), Office of Manufacturing and Energy Supply Chains (MESC), awarded Tennessee $5,555,068 to support small and medium-sized manufacturers (SMMs) in transitioning from internal combustion engine (ICE) vehicle and component production to hybrid vehicle and related hybrid vehicle component manufacturing.
Available Funding
TDEC anticipates awarding 5–10 competitive subgrants to eligible Tennessee manufacturers.
- Minimum Award: $500,000
- Maximum Award: Approximately $1,000,000
- Required Cost Share: At least 50% of total project cost
Subgrant funds may be used to support manufacturers in transitioning from ICE vehicle and component production to hybrid vehicle and related hybrid vehicle component manufacturing.:
- Retooling and modernization of manufacturing facilities
- Purchase and installation of manufacturing equipment
- Integration of hybrid vehicle production technologies
Subgrantees must incur and pay eligible costs prior to requesting reimbursement. No pre-award costs are eligible.
Eligible applicants must:
- Operate a manufacturing facility located in Tennessee
- Fall within North American Industry Classification System (NAICS) codes 3361, 3362, or 3363 (motor vehicle and parts manufacturing)
- Employ fewer than 500 employees at the applying facility
- Have annual revenue below $250 million
- Currently manufacture ICE vehicle equipment, components, or systems
- Propose a project that transitions production toward hybrid vehicle or hybrid vehicle component manufacturing
Eligible projects must support the conversion of ICE-related manufacturing facilities to Hybrid vehicle or component production.
Projects should include:
- A clearly defined retooling strategy
- A workforce retraining plan
- Measurable performance milestones
- A realistic three-year implementation timeline
Projects must be completed within the subgrant performance period.
All work funded through this program must be performed in the United States.
Upcoming Workshops
Coming Soon
FAQs
Coming Soon
Contact
Mark Valencia
Special Programs Coordinator
Office of Environmental Stewardship
mark.valencia@tn.gov
615-934-5826