Home » Biden administration approves $2.8 billion for U.S. EV battery and mineral production – the United States

Biden administration approves $2.8 billion for U.S. EV battery and mineral production – the United States

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Biden administration approves $2.8 billion for U.S. EV battery and mineral production – the United States

The U.S. Department of Energy (DOE) will receive $2.8 billion in grants from the Bipartisan Infrastructure Act to support its domestic battery manufacturing and mineral production, the White House announced Wednesday.The Biden administration is also launching a new government-wide initiative to strengthen the supply chain to support electric vehicle (EV) manufacturing.

It’s the latest move by President Biden to support a shift from polluting gas-powered cars to emission-free EVs, with a goal of making 50 percent of all new cars sold by 2030 EVs. The warning comes as automakers, mining officials and environmentalists warn about the supply of critical minerals the U.S. needs to power electric vehicles.

The DOE grant will be used for projects at 20 manufacturing and processing companies in 12 states. According to the White House, the projects will support the production of enough lithium, graphite and nickel to supply millions of new electric vehicle batteries each year.

In addition, the funds will be used to fund the construction of the first large-scale, commercial lithium electrolyte salt production facility in the United States. DOE will also provide funding for an electrode binder facility and the creation of the first commercial-scale domestic silica production facility to supply anode material for approximately 600,000 electric vehicle batteries annually. Finally, DOE will fund the installation of the first lithium iron phosphate cathode facility in the United States.

The White House is also launching an effort called the American Battery Material Initiative to mobilize the entire government to ensure a reliable and sustainable supply of critical minerals for electricity, electricity and EVs.

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This new effort will be critical to supporting EV production in the U.S., which is still in very early stages of development. The Democrats’ new tax and climate bill, the Reducing Inflation Act, will spend nearly $400 billion over the next decade on clean energy initiatives, including EV tax credits and financing for companies making clean cars in the United States. California has said it will ban the sale of new gasoline-powered vehicles starting in 2035, and a dozen other states are expected to follow suit.

But the only EVs eligible for the $7,500 credit are made in North America and use batteries that are dug out of the ground in the U.S. or its trading partners. These requirements are largely considered by many observers to be nearly impossible to achieve because the auto industry relies heavily on battery materials and components from China.

The auto industry has been sounding the alarm about the domestic shortfall. The Alliance for Automotive Innovation, which represents nearly all traditional U.S. automakers, wrote in response to the Interior Department’s request for comment: “The U.S. does not have significant processing capacity for electric vehicle battery materials and relies on refined raw materials from other countries. This puts the U.S. market at risk of being impacted by supply chains outside of U.S. control.”

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