Biden gives $2.8B in grants to make the US self-sufficient in making of batteries for EVs

In a bid to make the US self-sufficient in battery manufacturing, the Biden administration has awarded $2.8 billion in grants to as many as twenty battery manufacturing companies based in 12 states.
Biden announced the award on Wednesday October 19, 2020.

“Today, President Biden is announcing that the Department of Energy is awarding $2.8 billion in grants from the Bipartisan Infrastructure Law to 20 manufacturing and processing companies for projects across 12 states. President Biden is also announcing the American Battery Materials Initiative, a new effort to mobilize the entire government in securing a reliable and sustainable supply of critical minerals used for power, electricity, and electric vehicles (EVs). Together, these actions will improve America’s energy independence, strengthen national security, support good-paying jobs across battery supply chains, and lower costs for working families,” the White House stated in a press release.
The White House stated in a press note that Biden wants to make the US companies self-sufficient in making the electric vehicles enough for the US market.
“President Biden set an ambitious goal for electric vehicles (EV) to make half of all new vehicles sold in 2030 electric. Thanks to his leadership, economic and industrial strategy, and landmark legislative accomplishments, the United States is seeing historic investment in electric vehicle and battery manufacturing – which has resulted in EV sales tripling since President Biden took office. This market transformation is expected to increase demand for critical minerals such as lithium and graphite used in EV batteries. Today’s announcements demonstrate how the United States is poised to meet this challenge while growing our economy and creating high-quality union jobs in the battery supply chain,” a press release stated on Wednesday.
According to information shared by The White House, the Bipartisan Infrastructure Law, CHIPS & Science Act, and Inflation Reduction Act combined will invest more than $135 billion to build America’s electric vehicle future, including critical minerals sourcing and processing and battery manufacturing. The Bipartisan Infrastructure Law alone invests more than $7 billion to help domestic manufacturers have the critical minerals and other necessary components to manufacture the batteries we need to meet our climate goals. The Inflation Reduction Act makes new and used EVs more affordable for consumers with tax credits that support using minerals and battery components from the United States and our allies. And, it includes credits to help manufacturers retool existing facilities and build new battery manufacturing and critical mineral processing in the United States as well as grants to deploy zero emission heavy-duty vehicles.
President Biden’s economic agenda has already ignited a domestic manufacturing boom, with companies announcing over $100 billion in EV, battery and EV charging investments right here in the United States.
“Today’s actions and the launch of the American Battery Material Initiative will also make America more competitive, ensuring we can make more in America to support our own supply chains and workers. The U.S. and its allies currently do not produce enough of the critical minerals and battery materials needed to power clean energy technologies. China currently controls much of the critical mineral supply chain and the lack of mining, processing, and recycling capacity in the U.S. could hinder electric vehicle development and adoption, leaving the U.S. dependent on unreliable foreign supply chains. The American Battery Materials Initiative will align and leverage federal resources for growing the end-to-end battery supply chain; work with stakeholders, allies, and partners to develop more sustainable, secure, resilient supply chains; and support faster and fairer permitting for projects that build the domestic supply chain,” Press release stated.

BATTERY MANUFACTURING AWARDS

Meanwhile on Wednesday, the U.S. Department of Energy (DOE) also announced the first set of projects funded by the President’s Bipartisan Infrastructure Law to expand domestic manufacturing of batteries for electric vehicles and the electrical grid including $2.8 billion for 20 manufacturing and processing companies in 12 states, including Alabama, Georgia, Kentucky, Louisiana, Missouri, Nevada, New York, North Carolina, North Dakota, Ohio, Tennessee, and Washington, according to press release.

When matched by recipients, the funding leverages a total of more than $9 billion to boost American production of EV batteries. The projects will have positive impact on their own and also catalyze a whole US industry in the critical phases of the battery supply chain.

The funding for the selected projects will support:

Developing enough battery-grade lithium to supply approximately 2 million EVs annually.
Developing enough battery-grade graphite to supply approximately 1.2 million EVs annually.
Producing enough battery-grade nickel to supply approximately 400,000 EVs annually.
Installing the first large-scale, commercial lithium electrolyte salt (LiPF6) production facility in the United States.
Developing an electrode binder facility capable of supplying 45% of the anticipated domestic demand for binders for EV batteries in 2030.
Creating the first commercial scale domestic silicon oxide production facilities to supply anode materials for an estimated 600,000 EV batteries annually.
Installing the first lithium iron phosphate cathode facility in the United States.
All projects will develop enough lithium to supply over 2 million electric vehicles annually and establish significant domestic production of graphite and nickel.