DOE Invests to Strengthen Domestic Battery Manufacturing

In an effort to one up China in its dominance in the EV battery manufacturing sector, the Department of Energy, spearheaded by the Biden-Harris Admin, announced a $3.5 billion to strengthen domestic battery manufacturing. This substantial investment marks a turning point in long term EV investment in the US by prioritizing domestic production of componentry for EVs, on top of EV manufacturing itself. This investment is part of the larger effort to combat climate change and build a clean energy economy.

The funding will be used to support a variety of projects, including:

  • Battery manufacturing: This includes the production of batteries for electric vehicles, energy storage, and other applications.

  • Battery materials processing: This includes the mining, processing, and refining of raw materials used to make batteries.

  • Battery recycling: This includes the collection, sorting, and processing of used batteries to recover valuable materials.

This investment is expected to create thousands of jobs and help to make the United States a global leader in battery manufacturing. It will also help to reduce our reliance on foreign sources of batteries and battery materials.

Why is this investment important?

Electric vehicles and other clean energy technologies are critical to the fight against climate change. Batteries are a key component of these technologies, and the United States is currently reliant on foreign countries for a significant portion of its battery supply.

This investment will help to secure our domestic battery supply chain and make the United States a global leader in battery manufacturing. It will also create thousands of jobs and help to reduce our reliance on foreign sources of energy. In addition, part of the funding is directed to provide workforce opportunities to low- and moderate-income communities.

How will this investment be used?

The $3.5 billion investment will be used to support a variety of projects, including:

  • Grants for battery manufacturing: These grants will be awarded to companies that are building or expanding battery manufacturing facilities in the United States.

  • Loans for battery materials processing: These loans will be provided to companies that are building or expanding battery materials processing facilities in the United States.

  • R&D funding for battery recycling: This funding will be used to support research and development of new battery recycling technologies.

What are the expected benefits of this investment?

This investment is expected to create thousands of jobs and help to make the United States a global leader in battery manufacturing. It will also help to reduce our reliance on foreign sources of batteries and battery materials. In addition, this investment is expected to have the following benefits:

  • Reducing greenhouse gas emissions: Batteries are a key component of electric vehicles and other clean energy technologies, which can help to reduce greenhouse gas emissions.

  • Improve air quality: Electric vehicles produce zero tailpipe emissions, which can help to improve air quality.

  • Create energy independence: The United States is currently reliant on foreign countries for a significant portion of its battery supply. This investment will help to secure our domestic battery supply chain and make the United States more energy independent.

EV NewsNicholas AcciardoUS DOE, battery recycling, battery manufacturing