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Biden admin: $3.16Bln deal for US battery production, supply chains

  • By Al Mayadeen Net
  • Source: Agencies
  • 2 May 2022 22:20
2 Min Read

The Biden Administration has announced a $3.16Bln deal to boost US battery manufacturing and supply chains, in addition to $60 million that will support second-life applications for batteries once used to power electric vehicles.

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  • EVs
    Electric vehicles (Photo: Scott Olson / Getty Images)

The US Department of Energy announced Monday that the Biden administration will be boosting battery- and components-making for electric vehicles (EVs) in the United States and relevant supply chains by approving the funding of $3.16 billion for the project.
 
In a statement, the Energy Department said, "[The] $3.1 billion in funding from President Biden’s Bipartisan Infrastructure Law [is] to make more batteries and components in America, bolster domestic supply chains, create good-paying jobs, and help lower costs for families." 
 
The administration allowed an additional $60 million to be provided to support second-life applications for batteries once they have been used to power electric vehicles, in addition to new processes for recycling the materials back into the battery supply chain. 
 
"Both funding opportunities are key components of the administration’s whole-of-government supply chain strategy to strengthen America’s energy independence to reduce our reliance on competing nations and support the President’s goal to have electric vehicles make up half of all vehicle sales in America by 2030," the statement added. 
 
The United States was preparing to meet the demand as the global lithium-ion battery market is expected to grow fast over the next decade; officials noted selling more than 2.5 million plug-in electric vehicles by March. 

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Responding to funding for battery-capacity boost, US Energy Secretary Jennifer Granholm said, “Positioning the United States front and center in meeting the growing demand for advanced batteries is how we boost our competitiveness and electrify our transportation system."

According to the Energy Department, Battery costs in the US have decreased more than 90 percent and energy density and performance have increased rapidly since 2008, which paved the way for a transition to zero-emission vehicles.

The Department added that the sustainable domestic sourcing of the critical materials used to make lithium-ion batteries - such as lithium, nickel, cobalt, and graphite - will also contribute to avoiding or mitigating supply chain disruptions and accelerating domestic production.

 

  • United States
  • electric cars
  • US Department of Energy

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