10/28/2026
Indiana Gov. Mike Braun recently announced the launch of a new grant program to help Indiana small- and medium-sized businesses compete in manufacturing the cars of the future.
The program, named ADAPT, will provide match funding to help Indiana automotive suppliers expand their operations to support hybrid-, electric- and hydrogen-powered engines, strengthening Indiana’s automotive sector and ensuring the growth of in-demand jobs for Hoosiers.
ADAPT is being funded by a $10.79 million award from the U.S. Department of Energy. Indiana was one of five states with a significant automotive workforce selected to receive a share of $50 million designed to support the transition to new vehicle and engine models while creating and preserving hundreds of jobs at small- and mid-sized suppliers.
In Indiana, grants will range from $100,000 to $1 million and help small- and medium-sized automotive manufacturers invest in and develop new, commercial-ready capabilities to serve multiple vehicle markets and protect their workforce. The awards, which require a minimum 1:1 match investment from the company, will help offset costs related to new equipment and software and workforce training.
The program is designed to future-proof the state’s robust automotive manufacturing industry that hosts more than 500 automotive parts suppliers and produces 1.3 million cars and trucks annually, ranking No. 2 in the nation in overall production. Indiana’s automotive supply chain boasts approximately 320 small- and medium-sized manufacturers that support more than 34,000 jobs across the state.
According to the Center for Automotive Research, approximately 65% of U.S.-made light vehicles will contain a battery-equipped propulsion system and approximately 60% will still be equipped with traditional engines, which like hybrid vehicles may also feature battery-equipped propulsion, by 2032, signaling the importance of manufacturing for a diversified market.
Applications are open through Jan. 8, 2027. Indiana-headquartered manufacturers are encouraged to apply for funding online at iedc.in.gov/program/adapt/overview Awards will range from $100,000 to $1 million, require a 1:1 match investment from the company and be reimbursement-based, meaning the company will invest first and then be reimbursed for eligible expenses. Selected companies will have two years, or until Dec. 31, 2028, to implement the projects, upgrades and workforce training.
To be eligible for ADAPT, companies must:
•Be headquartered in Indiana and conduct a significant portion of its operations from Indiana
•Be a for-profit small- to medium-sized auto manufacturer (less than 1,500 employees with a preference for companies of 500 or fewer)
•Be concentrated in producing components for internal combustion engine vehicles;
•Provide at least a 1:1 investment match in each expense category, including capital equipment, capital-expense software and workforce training
•Be willing and able to serve as a sub-recipient of a federal grant
Proposed projects should be a new initiative or expansion focused on commercial-ready capabilities related to and required for hybrid, plug-in hybrid, battery-electric and hydrogen fuel cell vehicles that would not otherwise happen without the grant award. Companies receiving grant funding will become a federal sub-recipient of Indiana’s DOE award, meaning projects will be reviewed and approved by Indiana Economic Development Corp. and DOE and companies will be required to submit quarterly reports.
Applications will be evaluated through a competitive review process in partnership with Conexus Indiana, the state’s advanced manufacturing- and logistics-focused organization. After companies are reviewed and selected by IEDC, they will progress to the federal application and review process. Awards are expected to be finalized in the spring of 2027.
