DOE awards $2.8B in funding to 20 companies manufacturing batteries for vehicles, electric grid
In a push to jumpstart the manufacturing of batteries for electric vehicles and the larger electric grid, the U.S. Department of Energy (DOE) this week awarded the first set of 20 projects $2.8 billion from the Bipartisan Infrastructure law.
These corporate efforts span 12 states and include measures such as the extraction and processing of lithium, graphite, and other battery materials, manufacturing components, and demonstration of new approaches. This funding will go further still, thanks to a match by recipients, to total more than $9 billion for the production of clean energy technology, new jobs, and advancements of the Biden administration’s dual-emphasis on transitions to electric vehicles and a net-zero emissions economy.
Many of the components involved in such efforts are currently imported from other countries. This is despite the fact that plug-in electric vehicle sales have tripled since 2020. To counter the discrepancy, in statements, the White House stressed that it has emphasized the responsible and sustainable domestic sourcing of critical materials used to make lithium-ion batteries and wants to both accelerate battery production in-country and improve the processing and recycling of critical materials.
“This is truly a remarkable time for manufacturing in America, as President Biden’s Agenda and historic investments supercharge the private sector to ensure our clean energy future is American-made,” U.S. Secretary of Energy Jennifer Granholm said. “Producing advanced batteries and components here at home will accelerate the transition away from fossil fuels to meet the strong demand for electric vehicles, creating more good-paying jobs across the country.”
Applications were considered based on their technical merits, potential to increase American production of advanced battery components, and noted commitments to benefit local communities and workers. As a result, the final selections will advance, among other things:
- Development of enough battery-grade lithium to supply approximately 2 million EVs annually, graphite for 1.2 million EVs annually, and nickel for about 400,000 EVs annually
- Installation of the first large-scale, commercial lithium electrolyte salt production facility in the United States
- The first commercial-scale domestic silicon oxide production facilities to supply anode materials for approximately 600,000 EV batteries annually
- The first lithium iron phosphate cathode facility in the United States
Another $4.2 billion will be pumped into the domestic battery supply chain in the future to support upstream materials processing for batteries’ precursor materials.
