Biden Supports Battery Manufacturing

Biden-Harris administration announces $2.8 billion in grants to 20 battery companies.

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Biden-Harris administration announces $2.8 billion in subsidies to 20 battery manufacturing companies. These Department of Energy (DOE) allocations come from the bipartisan Infrastructure Act. Thus, these funds will be used to produce various battery components for electric vehicles and the electrical grid.

Financial mobilization

The Biden-Harris administration announces that 20 companies will receive a total of $2.8 billion to develop batteries in 12 states. The objective is to extract and process lithium, graphite and other battery materials. In addition, it is also a question of manufacturing batteries from recycled components and materials.

Recipients in addition to the federal investment will leverage a total of more than $9 billion. The goal is to boost U.S. production of clean energy technologies. For example, Jennifer M. Granholm, U.S. Secretary of Energy, states:

“This is truly a remarkable moment for manufacturing in America, as President Biden’s agenda and historic investments supercharge the private sector to ensure our clean energy future is made in America. Producing batteries and advanced components here at home will accelerate the transition away from fossil fuels to meet the high demand for electric vehicles, creating more good-paying jobs across the country.”

Increase in sales

In the U.S., sales of plug-in electric vehicles have tripled since the Biden-Harris administration took office. However, the country depends on foreign sources for many processed versions of critical minerals needed for battery production. Thus, the U.S. President is taking swift action to ensure a reliable and sustainable battery supply chain.

The funding will support powering 2 million vehicles per year, installing commercial lithium production in the United States. It will support the development of an industrial chain that can meet 45% of national demand in 2030. Finally, most of the raw materials for battery qualities currently come from China.

Employment support

DOE also evaluates applicants’ commitment to community and worker benefits. Indeed, the Biden-Harris administration wants the selected companies to actively participate in job creation. Despite a persistently low unemployment rate, many Americans have precarious employment in the industry.

Of the 20 companies selected, 5 will build new facilities in disadvantaged communities, and 15 in locations adjacent to disadvantaged communities. In addition, six projects set hiring goals for permanent positions. The facilities funded by these grants are expected to create more than 8,000 jobs, including 5,000 permanent jobs.

Interdepartmental collaboration

The Biden-Harris administration also announces the launch of the American Battery Material Initiative. It must coordinate federal, national and international investments and activities. The ultimate goal is to accelerate the development of the entire battery supply chain, including essential minerals and materials.

The initiative, led by DOE, will work with the U.S. Department of the Interior. In addition, the U.S. Department of State is also involved in the project. It will also build on the Global Infrastructure and Investment Partnership.

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