The White House on Friday allocated more than $3 billion to American companies to increase domestic production of advanced batteries and other materials used in electric vehicles.
The grants will support 25 projects across 14 states, including key battleground states such as Michigan, North Carolina, Ohio, Texas, South Carolina, and Louisiana. This funding is part of an ongoing initiative to decrease China’s global dominance in battery production for EVs and other electronic devices.
This marks the second round of EV battery funding under the bipartisan infrastructure law passed in 2021, following an initial round that provided $1.8 billion for 14 ongoing projects. The total amounts are lower than those announced in October 2022, reflecting the withdrawal or rejection of some projects during the negotiation process between companies and US officials.
The funding is a crucial component of President Joe Biden and Vice President Kamala Harris’s broader strategy to accelerate the production and adoption of electric vehicles, which they see as essential for mitigating climate change and strengthening US manufacturing. The companies receiving these awards are involved in processing lithium, graphite, and other battery materials, as well as manufacturing components used in EV batteries.
“Today’s awards move us closer to achieving the administration’s goal of building an end-to-end supply chain for batteries and critical minerals here in America, from mining to processing to manufacturing and recycling, which is vital to reduce China’s dominance of this critical sector,” said White House economic adviser Lael Brainard.
The Biden-Harris administration remains dedicated to producing batteries in the United States that will be essential for powering the nation’s grid, homes, businesses, and the iconic American auto industry.
Brainard further said that the US government has announced nearly $35 billion in investments to strengthen the country’s critical minerals and battery supply chains. These investments span from lithium mines in Nevada and North Carolina to battery factories in Michigan and Ohio, as well as the production of rare earth elements and magnets in California and Texas.
Brainard emphasized that the administration is utilizing various tools, including grants, loans, and allocated tax credits, to support these initiatives. She noted that the administration’s approach has attracted over $100 billion in private sector investment since President Biden took office.
In recent years, China has dominated the processing and refining of key minerals such as lithium, rare earth elements, and gallium, as well as battery production, leaving the US and its allies “vulnerable”, according to Brainard. In response, the US has taken “tough, targeted measures to enforce against unfair actions by China”, including higher tariffs on Chinese imports of critical minerals and restrictions on products from China and other adversaries labeled as foreign entities of concern by the US.
“We’re committed to making batteries in the United States of America,” said Energy Secretary Jennifer Granholm.
The awards announced on Friday, if finalized, will support 25 projects, creating 8,000 construction jobs and over 4,000 permanent jobs. Companies receiving grants will be required to match the funding on a 50-50 basis, with a minimum investment of $50 million, according to the Energy Department.
Matthew McDowell, an associate professor of engineering at Georgia Institute of Technology, noted that while federal funding may not be crucial for all projects, the influx of cash from the infrastructure and climate laws has significantly transformed the US battery manufacturing sector in recent years. McDowell expressed excitement about the next generation of batteries for clean energy storage, including solid state batteries, which have the potential to hold more energy than lithium ion batteries.
The grants will support 25 projects across 14 states, including key battleground states such as Michigan, North Carolina, Ohio, Texas, South Carolina, and Louisiana. This funding is part of an ongoing initiative to decrease China’s global dominance in battery production for EVs and other electronic devices.
This marks the second round of EV battery funding under the bipartisan infrastructure law passed in 2021, following an initial round that provided $1.8 billion for 14 ongoing projects. The total amounts are lower than those announced in October 2022, reflecting the withdrawal or rejection of some projects during the negotiation process between companies and US officials.
The funding is a crucial component of President Joe Biden and Vice President Kamala Harris’s broader strategy to accelerate the production and adoption of electric vehicles, which they see as essential for mitigating climate change and strengthening US manufacturing. The companies receiving these awards are involved in processing lithium, graphite, and other battery materials, as well as manufacturing components used in EV batteries.
“Today’s awards move us closer to achieving the administration’s goal of building an end-to-end supply chain for batteries and critical minerals here in America, from mining to processing to manufacturing and recycling, which is vital to reduce China’s dominance of this critical sector,” said White House economic adviser Lael Brainard.
The Biden-Harris administration remains dedicated to producing batteries in the United States that will be essential for powering the nation’s grid, homes, businesses, and the iconic American auto industry.
Brainard further said that the US government has announced nearly $35 billion in investments to strengthen the country’s critical minerals and battery supply chains. These investments span from lithium mines in Nevada and North Carolina to battery factories in Michigan and Ohio, as well as the production of rare earth elements and magnets in California and Texas.
Brainard emphasized that the administration is utilizing various tools, including grants, loans, and allocated tax credits, to support these initiatives. She noted that the administration’s approach has attracted over $100 billion in private sector investment since President Biden took office.
In recent years, China has dominated the processing and refining of key minerals such as lithium, rare earth elements, and gallium, as well as battery production, leaving the US and its allies “vulnerable”, according to Brainard. In response, the US has taken “tough, targeted measures to enforce against unfair actions by China”, including higher tariffs on Chinese imports of critical minerals and restrictions on products from China and other adversaries labeled as foreign entities of concern by the US.
“We’re committed to making batteries in the United States of America,” said Energy Secretary Jennifer Granholm.
The awards announced on Friday, if finalized, will support 25 projects, creating 8,000 construction jobs and over 4,000 permanent jobs. Companies receiving grants will be required to match the funding on a 50-50 basis, with a minimum investment of $50 million, according to the Energy Department.
Matthew McDowell, an associate professor of engineering at Georgia Institute of Technology, noted that while federal funding may not be crucial for all projects, the influx of cash from the infrastructure and climate laws has significantly transformed the US battery manufacturing sector in recent years. McDowell expressed excitement about the next generation of batteries for clean energy storage, including solid state batteries, which have the potential to hold more energy than lithium ion batteries.
