Tennessee Hybrid Vehicle Manufacturing Conversion Grants
Please note this grant offering is still under development.
The application window is anticipated to open in January 2027. See below on this page for information about workshops being hosted on September 23 and September 29.
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.
DOE Hybrid Vehicle Conversion Roadmapping Assistance Application
Tennessee’s Hybrid Vehicle Manufacturing Conversion Grant Program is designed to support eligible Tennessee manufacturers as they transition from internal combustion engine-related manufacturing to hybrid vehicle or hybrid vehicle component production. This application is for manufacturers requesting technical assistance with roadmapping a potential conversion project before applying for the full grant opportunity. The information provided will help determine whether your project may align with grant requirements and what type of assistance may be needed to develop a clearer plan for moving forward.
Facilities selected for assistance will receive a needs assessment documenting their current capabilities, a customized market briefing highlighting relevant market segments, and independent recommendations about their current market position and paths for entering the hybrid vehicle manufacturing supply chain. This assistance is estimated to be valued at $30,000.
Please provide complete responses to all applicable questions. This information will help us review and evaluate submitted applications.
To request roadmapping assistance, please complete the DOE Hybrid Vehicle Conversion Roadmapping Assistance Application.
Webinars
The Tennessee Department of Environment and Conservation – Office of Environmental Stewardship, in partnership with the Tennessee Manufacturing Extension Partnership (TMEP), recently hosted two workshops for Tennessee-based facilities involved in manufacturing internal combustion engine–related vehicle equipment, components, or systems. These sessions provided an overview of the Hybrid Vehicle Manufacturing Conversion Grant Program and introduced TMEP’s technical assistance resources designed to help facilities assess their readiness to transition into hybrid vehicle or component production.
The workshops covered program eligibility, examples of qualifying projects, and guidance on long‑term roadmapping for facilities considering a shift from internal combustion engine production to hybrid technologies.
Recorded webinar sessions from these workshops will be posted soon.
FAQs
Coming Soon
Contact
Mark Valencia
Special Programs Coordinator
Office of Environmental Stewardship
mark.valencia@tn.gov
615-934-5826