Michigan’s automotive supply base is entering a pivotal moment as the industry accelerates toward electrification. To help small- and medium-sized manufacturers remain competitive in this rapidly evolving landscape, the Michigan Department of Labor & Economic Opportunity (LEO) has introduced the Michigan Supplier Conversion Grant Program, backed by $22.6 million in federal funding from the U.S. Department of Energy.

Designed to strengthen Michigan’s manufacturing ecosystem, the program provides financial support to companies retooling operations to participate in the electric and advanced vehicle supply chain.

Program Purpose

The Supplier Conversion Grant Program aims to help automotive suppliers currently producing components for internal combustion engine (ICE) vehicles diversify into parts and materials needed for hybrid and electric vehicles. This initiative supports Michigan’s long-term economic strategy to maintain leadership in the mobility sector, while helping businesses future‑proof their operations.

According to state officials, the program is part of a broader effort to ensure Michigan manufacturers remain globally competitive as the industry undergoes one of the most significant transitions in its history.

Available Funding

The program allocates $22.6 million in total grant funding. These dollars are intended to help companies recapitalize, retool or upgrade equipment necessary to enter qualified vehicle supply chains.

Out of the total fund, the state plans to make between 10 and 30 awards. These awards are anticipated to range between $500,000 to $2,000,000.

Who Is Eligible?

To qualify, applicants must meet the following criteria:

• Be a domestic business located in Michigan.
• Currently produce parts, components, or materials for ICE vehicles.
• Plan to expand or convert production to support hybrid or electric vehicle components.
• Be a small- or medium-sized automotive manufacturer, defined as one of the following:
  • Fewer than 1,500 employees.
  • Operating a facility with 500 or fewer employees.

This focus ensures support reaches the segment of the supply chain most vulnerable to disruption, yet critical to Michigan’s manufacturing strength. You can download the program guidelines here. 

Strategic Impact for Michigan Suppliers

As OEMs and Tier 1 suppliers shift their sourcing strategies toward electrified platforms, smaller manufacturers face increasing pressure to adapt. The Supplier Conversion Grant Program helps reduce financial barriers to modernization, enabling companies to:

• Enter new and growing EV supply chains.
• Retain and upskill their workforce.
• Invest in advanced manufacturing capabilities.
• Strengthen long-term operational resilience.

State leaders emphasize that this initiative is not only about supporting individual businesses but also about reinforcing Michigan’s position as a global mobility hub.

Next Steps

If your company is eligible to apply, the deadline to submit is 3:00 p.m. on April 9, 2026. If you haven’t joined the Michigan Hub for Manufacturers, you’re encouraged to do so. 

RFP applications will be submitted through LEO’s Electronic Grant Administration Management System (EGrAMS), so if you’re company isn’t registered, be sure to set up your profile before submitting the application. 

As always, our Michigan CPAs are here to help should you need any support during this process.