The money will be used to create charging stations at eight locations including Princess Street, St Anne Lane Car Park and Queen Street Car Park. Other charging hubs will be created in Fife, Perth and Kinross and Angus as well as at six NHS Tayside hospitals.
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With 58 charging points already located at eight publicly available charging locations, the council estimates CO2 levels will be reduced by 122 tonnes each year in 2016/17.
The additional cash follows a £1.86m grant from the Office of Low Emission Vehicles (OLEV) earlier this year.
Bill Campbell depute convener of the council's city development committee, said: "We already lead the way in our use and encouragement of low and zero emission vehicles in the city and the grant from OLEV was recognition of that fact.
"These additional charging points at strategic locations across the city will continue on the journey towards helping to improve the environment for the people of Dundee."
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