DOE Receives $3 Billion for Domestic Battery Production
By Ayla Kanber, Earth Forward Group
In early May, the U.S. Department of Energy (DOE) announced $3.1 billion in funding from President Biden’s Bipartisan Infrastructure Law to make more batteries and components in America, bolster domestic supply chains, create good-paying jobs, and help lower costs for families. These investments will help build new, retrofitted, and expanded commercial facilities, manufacturing demonstrations, and battery recycling.
President Biden signed an executive order to mandate that zero emissions vehicles make up half of new vehicle sales in the U.S. by 2030. The advancement of clean mobility is a key focus area for the Biden administration. Earlier this year, the administration also announced the allocation of $5 billion over five years for the development of an EV charging network across the interstate highway system.
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. President Biden’s historic investment in battery production and recycling will give our domestic supply chain the jolt it needs to become more secure and less reliant on other nations — strengthening our clean energy economy, creating good paying jobs, and decarbonizing the transportation sector.
— Statement from U.S. Secretary of Energy Jennifer M. Granholm
As the market demand for electric vehicles increases rapidly, U.S. and global automakers have introduced plans to dramatically expand North American electric vehicle and battery production over the next few years, including several multibillion dollar investment announcements from companies including GM, Ford and Toyota.
The DOE also announced $60 million in funding to support second-life applications for used EV batteries, and for new processes for recycling materials back into the battery supply chain. The “Battery Materials Processing and Battery Manufacturing” and “Electric Drive Vehicle Battery Recycling and Second Life Applications” funding opportunities are aligned with the National Blueprint for Lithium Batteries, authored by the Federal Consortium for Advanced Batteries, and led by DOE and the Departments of Defense, Commerce, and State. The plan aims to support domestic battery supply by equitably creating a robust and diverse battery workforce by 2030.
These initiatives are aligned with President Biden’s Justice40 initiative. Justice40 is a whole-of-government effort to ensure that Federal agencies work with states and local communities to make good on President Biden’s promise to deliver at least 40 percent of the overall benefits from Federal investments in climate and clean energy to disadvantaged communities.
