The Energy Department is allocating $2.8 billion from a bipartisan infrastructure bill to boost domestic manufacturing
The administration is launching an “American Battery Materials Initiative” to strengthen supply chains for key minerals
Today, President Biden is announcing that the Department of Energy is awarding $2.8 billion in grants from the Bipartisan Infrastructure Act to 20 manufacturing and processing companies for projects in 12 states. President Biden is also announcing the US Battery Materials Initiative, a new effort to mobilize the entire government to ensure a reliable and sustainable supply of key minerals used to power, electricity and electric vehicles (EVs). Together, these actions will improve America’s energy independence, strengthen national security, support good-paying jobs in battery supply chains, and lower costs for working families.
President Biden has set an ambitious goal for electric vehicles (EVs) that by 2030 half of all new vehicles sold will be electric. Thanks to his leadership, economic and industrial strategy, and landmark legislative accomplishments, the United States has seen historic investment in electric vehicle and battery manufacturing—resulting in a tripling of electric vehicle sales since President Biden took office. This market transformation is expected to increase demand for critical minerals such as lithium and graphite used in electric vehicle batteries. Today’s announcements show how the United States is prepared to meet this challenge while growing our economy and creating high-quality, unionized jobs in the battery supply chain.
Bipartisan Infrastructure Act, CHIPS & Together, the Science Act and the Reduce Inflation Act will invest more than $135 billion in building America’s electric vehicle future, including the sourcing and processing of key minerals and battery manufacturing. The Bipartisan Infrastructure Act alone invests more than $7 billion to help domestic manufacturers obtain key minerals and other necessary components to produce the batteries we need to meet our climate goals. The Inflation Reduction Act makes new and used electric vehicles more affordable for consumers through tax credits that support the use of minerals and battery components from the United States and our allies. It also includes credits to help manufacturers convert existing facilities and build new battery manufacturing and critical mineral processing facilities in the United States, as well as grants to introduce zero-emission heavy-duty vehicles.
President Biden’s economic agenda has already sparked a boom in domestic manufacturing, with companies announcing more than $100 billion in investments in electric vehicles, batteries and electric vehicle charging right here in the United States.
Today’s actions and the launch of the American Battery Materials Initiative will also make America more competitive, ensuring that we can do more in America to support our own supply chains and workers. The US and its allies currently do not produce enough of the critical minerals and battery materials needed to power clean energy technologies. China currently controls much of the critical mineral supply chain, and a lack of U.S. mining, processing and recycling capacity could hinder the development and deployment of electric vehicles, leaving the U.S. dependent on unreliable foreign supply chains. The US Battery Materials Initiative will align and leverage federal funding to grow the end-to-end battery supply chain; working with stakeholders, allies and partners to develop more sustainable, secure and resilient supply chains; and support faster and fairer permitting for projects that build a domestic supply chain.
Today, the U.S. Department of Energy (DOE) is announcing the first set of projects funded by the President’s bipartisan Infrastructure Act to expand domestic battery production for electric vehicles and the electric grid, including $2.8 billion for 20 manufacturing and processing companies in 12 states. including Alabama, Georgia, Kentucky, Louisiana, Missouri, Nevada, New York, North Carolina, North Dakota, Ohio, Tennessee, and Washington.
If matched with recipients, the funding adds up to more than $9 billion in total to increase U.S. production of electric vehicle batteries. The projects themselves will positively impact and also accelerate the entire US industry at critical stages of the battery supply chain.
Funds for selected projects will support:
All the projects will develop enough lithium to supply more than 2 million electric vehicles annually and establish significant domestic production of graphite and nickel.
Information sheets about the projects can be found here.
US BATTERY MATERIALS INITIATIVE
President Biden is committed to advancing America’s energy security and energy independence while taking historic action to address the climate crisis. The White House today is launching a new government-wide effort to ensure a reliable and sustainable supply of the key minerals that power everything from electric vehicles to homes to defense systems. The US Battery Materials Initiative will be led by a White House Steering Committee and coordinated by the Department of Energy with support from the Department of the Interior.
The Critical Minerals and High Capacity Battery Supply Chain Review initiated by Executive Order 14017 recommends (1) a mineral-by-mineral approach to expanding sustainable, environmentally responsible domestic mining, processing, and recycling of critical minerals; (2) working with partners and allies to diversify international supply chains, recognizing that America’s national and economic security is strengthened by strong alliances, and international coalitions of trusted partners strengthen the security of our supply chains; and (3) developing a faster and fairer domestic process that meets stringent environmental and labor standards, ensures meaningful community participation and consultation with Tribal Nations, and reduces permitting time and costs.
The initiative will operate under the Global Infrastructure and Investment Partnership and leverage the State Department’s ongoing work to work with partners and allies to strengthen key mineral supply chains around the world, and will leverage and enhance current US government-wide efforts to meet by resources and strengthening energy security.
To further accelerate efforts to secure the supply chain for critical minerals and materials needed for advanced batteries, this initiative will coordinate White House and agency attention to implement the President’s Critical Minerals Strategy, coordinate ongoing work on critical minerals supply chains, coordinate community and industry collaboration, helping to direct research, grants and loans that support the environmentally responsible mining of critical minerals, processing and recycling, and assisting in diplomatic efforts to build reliable and sustainable global supply chains. The initiative will also strengthen federal collaboration, partnership, and consultation with the private sector, state, tribal, and local governments, environmental and environmental justice leaders, and labor unions to more effectively allocate resources, ensure that tribal and local community concerns are heard and addressed earlier in the planning process and reflect our country’s commitment to high environmental, social and labor standards.
Finally, the initiative will foster deep, ongoing collaboration with international partners and allies to map resources, advance strategic partnerships, diversify global supply chains, and raise international environmental, community, and worker safety standards for extraction, processing, and recycling. With this initiative, the administration is delivering on its commitment to build with integrity at scale and speed as it implements America’s modern industrial strategy.
PRESIDENT BIDEN’S ECONOMIC PLAN IN ACTION
President Biden’s economic plan aims to build the middle class from the bottom up and the middle out, lower costs for working families and create good-paying jobs in America. Today’s actions build on President Biden’s historic actions to secure the critical supply chain of minerals for battery production, including:
