The U.S. Department of Energy has announced a funding of up to $3.5 billion to enhance the production of batteries and battery materials within the country. This initiative is a result of the infrastructure law signed by President Joe Biden in 2021.
The primary objective of this funding is to strengthen battery manufacturing and supply chains by expanding domestic facilities that focus on critical minerals, next-generation technologies, and lithium-based technologies.
U.S. Secretary of Energy Jennifer Granholm expressed that positioning the United States at the forefront of advanced battery production is crucial for boosting global competitiveness, generating high-paying jobs, and bolstering the clean energy economy. The Department of Energy aims to achieve these goals through this funding.
The announcement comes in the wake of China’s dominance in the global electric vehicle (EV) battery supply chain. The Chinese government’s decision to impose restrictions on the anode material graphite in October has caused uncertainty within the industry.
Recognizing the challenges posed by China’s control over the EV battery sector, two Democratic U.S. senators had recently written a letter to the Energy Department. In the letter, they urged the government to take measures to enhance U.S. battery manufacturing and invest in research for next-generation batteries.
US Government Takes Action to Boost Domestic Battery Manufacturing with $3.5 Billion Funding
The U.S. Department of Energy has unveiled a funding package of up to $3.5 billion that aims to strengthen domestic battery production and support the development of battery materials. This funding is a result of the infrastructure law signed by President Joe Biden in 2021.
Its purpose is to expand domestic facilities focused on critical minerals, next-generation technologies, and lithium-based technologies, thus enhancing battery manufacturing and supply chains.
U.S. Secretary of Energy Jennifer Granholm emphasized the significance of positioning the United States as a global leader in advanced battery production. She stated that this effort would not only increase global competitiveness but also create and sustain well-paying jobs, while simultaneously fortifying the clean energy economy.
China currently holds a dominant position in the global electric vehicle (EV) battery supply chain. The situation has been further complicated by China’s decision to impose restrictions on anode material graphite in October, causing uncertainties in the industry.
In a letter addressed to the Energy Department, two Democratic U.S. senators highlighted China’s dominance and export controls in the battery market. They called for actions to boost U.S. battery manufacturing and support research in next-generation battery technologies.