US Department Of Energy To Provide $3 Billion For EV Battery Manufacturing

The rise of electric cars and the global semiconductor shortage has done one thing - waking up the American manufacturing sector, especially for electronics. The US government has dramatically increased funding for the local manufacturing ecosystem with regard to semiconductors and batteries. Now, the Department of Energy in the US will provide $3 billion for the manufacturing of batteries for electric vehicles and to enhance the local supply chain. This money is coming from the infrastructure bill that included $7.5 billion for electric transit vehicles and another $7.5 billion for the electric charging infrastructure.

"The U.S. Department of Energy (DOE) today announced $3.1 billion in funding from President Biden's Bipartisan Infrastructure Law to make more batteries and components in America, bolster domestic supply chains, create good-paying jobs, and help lower costs for families. The infrastructure investments will support the creation of new, retrofitted, and expanded commercial facilities as well as manufacturing demonstrations and battery recycling. DOE is also announcing a separate $60 million to support second-life applications for batteries once used to power EVs, as well as new processes for recycling 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 vehicles sales in America by 2030," said the Department of Energy in a press release.

Ford is one of the major US companies which has been pushing for more battery supply chain
Photo Credit: Reuters

The Biden administration has met with auto executives like Tesla's Elon Musk and GM's Mary Barra to discuss how the US can accelerate its adoption of electric vehicles. The administration has been focused on producing more nickel which is central to the manufacturing of batteries for EVs, alongside other minerals like lithium, graphite and cobalt which will be now mined in the US.

Positioning the United States front and centre in meeting the growing demand for advanced batteries is how we boost our competitiveness and electrify our transportation system. President Biden's historic investment in battery production and recycling will give our domestic supply chain the jolt it needs to become more secure and less reliant on other nations-strengthening our clean energy economy, creating good-paying jobs, and decarbonizing the transportation sector," said Jennifer M Granholm, the secretary of energy.