The United States Department of Energy (DOE) is awarding grants of up to $2.8 billion to back domestic EV battery manufacturing and mineral production.
The grants is from the Bipartisan Infrastructure Law and it is part of the government’s plan to improve supply chains to support EV manufacturing. President Biden’s administration is working towards ensuring that half of the cars sold in the country by 2030 are electric.
With the race to become independent of Russia’s gas supply and cut down on emission, automakers are facing several issues including scarcity of key minerals due to betoken supply chain.
“The US does not have significant processing capacity for EV battery materials and is reliant on other nations for refined raw materials, leaving the US market exposed to the risk of being impacted by supply chains outside of US control,” the Alliance for Automotive Innovation had said.
The grants will be distributed among 20 manufacturing and processing companies in 12 states. The projects will support production of enough minerals such as lithium, graphite, and nickel to satisfy demand for millions of EV batteries every year.
Part of the funds will go into building a large-scale commercial lithium electrolyte salt production facility, the first of its kind in the country. Also, the government will provide an electrode binder facility that would be in charge of manufacturing and supplying anode materials.
Called the American Battery Material Initiative, the White House hopes that this leads to a steady supply of minerals needed not just for EVs but clean power and electricity. It joins other moves like the Inflation Reduction Act, which includes clean energy initiatives, tax credits and financing.
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