President Biden To Provide $3.1b To Support Domestic Production Of EV Batteries

The Biden administration on Monday announced it’s committing up to $3.1 billion to support the domestic production of EV batteries. The funding comes under the Bipartisan Infrastructure Law enacted last year. 

The announcement was made by the White House in conjunction with the Department of Energy. “Positioning the United States front and center in meeting the growing demand for advanced batteries is how we boost our competitiveness and electrify our transportation system,” said U.S. Secretary of Energy Jennifer M. Granholm.

The funding is expected to help U.S. companies build new factories and retrofit existing ones to make EV batteries and related parts. Additionally, the department said it will commit $60 million for the support of second-life applications for EV batteries as well as new recycling processes for materials in the battery industry. 

The investment comes at a time when the automotive industry is experiencing a tectonic shift as it transitions to electrification. Among all prerequisites, battery technology is key in this transition.

To keep pace with the growing market demand for EV cars, the US seeks to position itself as a leader in the industry which is majorly dominated by Asian countries with China controlling a majority of the world’s raw materials refining. “For too long, other countries have been outpacing the United States in funding new technologies,” said Senator Debbie Stabenow. “Thanks to our bipartisan efforts in Congress, and with the President’s leadership, this funding will help us win this race by investing in our supply chain and manufacturing here at home,” she added. 

Tesla as an EV maker has already been a leader in producing batteries in the US. Recently, major automakers such as Ford, Stellantis and General Motors have been making major moves in joining the race. 

In the form of grants, the money will be made available for companies to build plants that will process raw components of batteries into finished products in the U.S.