The Joe Biden administration said it will provide $3.1 billion in funding to support domestic production of advanced batteries that will spur the adoption of electric vehicles. Supporters of the funding, which is part of a bipartisan Infrastructure Law passed last year, say supporting local battery initiatives will dampen fluctuations in global oil markets, especially rising gas prices driven in large part by Russia’s invasion of Ukraine.
The White House said on Monday it will also provide separate $60 million in grants to battery recycling initiatives, both of which will support efforts to “reduce our dependence on competing nations like China that have an advantage over the global supply chain.” according to a statement from the Department of Energy.
The announcement comes about a month after Biden said his administration would enact the Defense Production Act to protect U.S. sources of critical materials such as lithium, nickel, cobalt, graphite and manganese, which are used to power electric vehicle batteries and energy storage.
Today, most of these minerals are processed in Asia. As of 2020, China alone controlled 80% of the world’s raw material processing, 77% of the world’s cell manufacturing capacity, and 60% of the world’s component production due to large domestic demand for batteries. The $3.1 billion will help US companies build new factories and upgrade existing ones to produce electric vehicle batteries and related parts.
Tesla has been manufacturing batteries in the US for many years, but other US automakers are primarily Ford and General Motorsalso allocate billions of dollars of investment to control the supply chain at home.
General Motors enters into joint venture with LG Energy produce batteries in the USA at several factories, and Ford works with SK Innovation do the same thing.
LG also recently announced a $1.4 billion investment. build a battery plant in Arizona, although it has not yet confirmed which automaker it will supply batteries to. Panasonic is looking for sites to build a factory in Oklahoma or Kansas. Toyota has also targeted a battery plant in the US. start production in 2025.
Credit: techcrunch.com /