The Biden administration is investing more than $3 billion in U.S. companies to enhance domestic production of advanced batteries and materials critical for electric vehicles (EVs). This initiative aims to reduce China’s dominance in battery manufacturing, crucial for the transition to cleaner energy and the broader electronics market.
The funding will support 25 projects across 14 states, including key battlegrounds such as Michigan, North Carolina, Ohio, Texas, South Carolina, and Louisiana. This announcement marks the second round of funding for EV battery projects under the bipartisan infrastructure law passed in 2021. The previous round allocated $1.8 billion to 14 ongoing projects, with the current amounts adjusted due to some projects being withdrawn or rejected during lengthy negotiations.
This financial boost is part of a broader strategy by President Biden and Vice President Kamala Harris to increase electric vehicle production and sales, integral to their climate change agenda and the revitalization of U.S. manufacturing. The companies awarded grants will focus on processing lithium, graphite, and other essential battery materials, as well as manufacturing components for EV batteries.
“Today’s awards bring us closer to establishing a comprehensive supply chain for batteries and critical minerals in America—from mining and processing to manufacturing and recycling—essential for reducing China’s influence in this vital sector,” stated Lael Brainard, White House economic adviser.
Brainard emphasized the administration’s commitment to producing batteries domestically, vital for powering the electrical grid, homes, businesses, and the iconic U.S. auto industry.
With these latest awards, the total investment in U.S. critical minerals and battery supply chains approaches $35 billion. This includes significant projects like lithium mines in Nevada and North Carolina, battery factories in Michigan and Ohio, and rare earth element production in California and Texas. “We’re utilizing every resource available, from grants and loans to tax credits,” Brainard noted, highlighting that over $100 billion in private sector investment has been leveraged since Biden took office.
China has dominated the market for processing key minerals such as lithium, rare earth elements, and gallium, as well as battery production, leaving the U.S. and its allies vulnerable. In response, the U.S. has enacted “tough, targeted measures” against unfair practices by China, including higher tariffs on critical mineral imports last week.
Energy Secretary Jennifer Granholm reinforced the administration’s commitment to U.S. battery manufacturing. The newly announced awards will support 25 projects, creating approximately 8,000 construction jobs and over 4,000 permanent positions. Companies will need to match the grants on a 50-50 basis, with a minimum investment of $50 million.
Experts, like Matthew McDowell, an associate professor of engineering at Georgia Institute of Technology, highlight the transformative impact of federal funding on the U.S. battery manufacturing landscape. McDowell expressed enthusiasm for the next generation of batteries, including solid-state technologies, which could surpass the energy capacity of traditional lithium-ion batteries.
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