A method for managing thermal energy in an internal combustion engine including an exhaust gas recirculation system and an engine cooling system includes recirculating a portion of an exhaust gas through the exhaust gas recirculation system that is in thermal communication with a first side of a thermoelectric device, flowing an engine coolant into thermal communication with a second side of a thermoelectric device, and controlling electric current between an electrical energy storage device and the thermoelectric device to transfer thermal energy between the recirculated exhaust gas and the engine coolant.