Energy Department to spend $3 billion on battery production to meet Biden’s electric vehicle goal

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The Department of Energy on Monday announced more than $3 billion in funding to strengthen supply chains and expand domestic production of advanced batteries in a bid to meet President Biden’s goal of ensuring that electric vehicles will account for half of all vehicle sales in America by 2030.

The Department of Energy on Monday announced $3.1 billion in bipartisan Infrastructure Act funding to manufacture more batteries and components in the United States. The funding, administration officials say, will also be used to strengthen domestic supply chains, which they say will help create jobs and reduce costs for families.


The investment is intended to support the creation of “new modernized and expanded commercial facilities as well as manufacturing demonstrations and battery recycling”.

Energy Secretary Jennifer Granholm speaks during a press briefing at the White House, November 23, 2021, in Washington, DC
(AP Photo/Evan Vucci, File)

The Department of Energy also announced a separate $60 million to support second-life applications for batteries that had once been used to power electric vehicles. The funding will also help support “new material recycling processes in the battery supply chain”.

“By positioning the United States at the forefront to meet growing demand for advanced batteries, we are strengthening our competitiveness and electrifying our transportation system,” Energy Secretary Jennifer Granholm said Monday. “President Biden’s historic investment in battery production and recycling will give our national supply chain the shock it needs to become safer and less dependent on other nations, strengthening our clean energy economy, creating well-paying jobs and decarbonizing the transport sector. »

Administration officials expect “rapid” growth in the global lithium-ion battery market over the next decade, and said the Department of Energy is working with industry to prepare the U.S. United with increased market demand.

According to the Department of Energy, by the end of March more than 2.5 million plug-in electric vehicles had been sold in America. The department said that “responsible and sustainable domestic sourcing of critical materials used to manufacture lithium-ion batteries, such as lithium, cobalt, nickel and graphite, will help avoid or mitigate supply chain disruptions.” supply chain and ramping up battery production in America to meet it. demand and support the adoption of electric vehicles. »


Administration officials said Monday that the investments are “key components” of the Biden administration’s “whole-of-government” supply chain strategy to “strengthen America’s energy independence to reduce our dependence towards competing nations and supporting the president’s goal of having electric vehicles. half of all vehicle sales in America by 2030.

The bipartisan Infrastructure Act commits more than $7 billion to strengthening the U.S. battery supply chain, which includes producing and recycling critical minerals without re-mining or extraction and sourcing materials for domestic manufacturing.


The law also includes $7.5 billion for electric vehicle chargers, $5 billion for electric transit buses, and $5 billion for clean, electric school buses.

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