To compete with China’s dominance, the US has announced a $3 billion boost for domestic battery manufacturing

The Biden administration is actively working to enhance the U.S. battery supply chain and diminish reliance on China. The Department of Energy (DOE) announced on Friday its intention to allocate $3 billion to 25 recipients.

The Biden administration is actively endeavoring to fortify the U.S. battery supply chain and diminish reliance on China.

The Department of Energy (DOE) announced on Friday its intention to allocate $3 billion to 25 projects across 14 states, with the objective of enhancing local production of innovative batteries and battery components.

“This investment is essential for enhancing our domestic battery manufacturing capacity,” stated Ali Zaidi, White House climate advisor, emphasizing the vital importance of secure minerals in addressing climate change.

“This positions us to spearhead the next generation of battery technologies,” he remarked, highlighting the prospects for innovations such as solid-state batteries.

The investment addresses multiple components of the battery supply chain, encompassing Firms such as Albemarle (granted $67 million) will concentrate on manufacturing anode materials for advanced lithium-ion batteries.

Zaidi stated, “Mineral security is vital for climate security,” highlighting the need of home production in ensuring both environmental and economic sustainability.

The project is a consequence of the recent implementation of U.S. electric vehicle tax credit regulations aimed at promoting domestic battery manufacture and the procurement of essential minerals.

The Department of Energy (DOE) anticipates that the approved grants will yield a total investment of $16 billion for the projects and facilitate the development of 12,000 jobs in production and construction.

The financial announcement highlights the administration’s dedication to cultivating domestic resources and diminishing dependence on foreign suppliers, especially China.

Grants up to $450 million were distributed to firms such as SWA Lithium and TerraVolta Resources for initiatives employing Direct Lithium Extraction (DLE) technology to extract lithium from sources like brine.

Revex Technologies, co-established by Lundin Mining, secured $145 million to process waste from the only operational U.S. nickel mine, with the objective of supplying domestic nickel for battery manufacturing.

South32 Hermosa secured $166 million for the extraction of high-purity manganese sulfate monohydrate (HPMSM), an essential element for electric vehicle battery formulations, which are predominantly produced in China.

This strategic investment in domestic extraction and processing seeks to establish a more resilient and secure battery supply chain for the U.S., thereby promoting the development and production of electric vehicles domestically.