Indiana Launches ADAPT Grant Program to Fund Auto Supplier Transition
Indiana is rolling out a $10.79 million grant initiative aimed at helping local auto parts suppliers retool for hybrid, electric, and hydrogen-powered vehicle production. Funded by the U.S. Department of Energy, the Automotive Diversification and Production Transition program—known as ADAPT—places Indiana among five states with significant automotive workforces selected to share in a broader $50 million federal push.
The state currently hosts more than 500 automotive parts suppliers and ranks second nationally in total vehicle production, manufacturing 1.3 million cars annually. Through the new grants, officials hope to safeguard those manufacturing operations as the broader industry shifts toward alternative powertrains.
Indiana Manufacturers Face Application Deadlines and Matching Rules
Awards through the ADAPT program will range from $100,000 to $1 million per recipient. To secure the funding, participating companies must provide a one-to-one financial match for their proposed projects. The program requires businesses to invest first before receiving reimbursement for eligible expenses.
Application windows opened Tuesday for Indiana-headquartered manufacturers, with submissions accepted through Jan. 8. Businesses selected for funding will have until the end of 2028 to fully execute their designated projects, factory upgrades, and workforce training initiatives.
“Indiana is a leading state for automotive manufacturing, and the ADAPT program will help position the sector for future growth while skilling up our workforce and creating high-demand jobs for Hoosiers,” Gov. Mike Braun said in a statement provided to WRTV. “The program will help manufacturers meet growing demand for hybrid, electric and hydrogen fuel cell vehicles, ensuring Indiana remains a global leader in the automotive supply chain.”
State officials indicate the funding will allow small and medium businesses to develop commercial-ready capabilities across multiple vehicle markets, protecting thousands of jobs tied to the state’s traditional combustion-engine supply chain.
