A $3.1 billion plan to boost domestic manufacturing of batteries was announced by the Biden administration on Monday.
Climate change will be mitigated by the electrification of the transportation sector. The transportation sector is responsible for one-third of the U.S. greenhouse gas emissions each year.
Grants will be given to support the expansion of manufacturing of batteries and battery components, as well as establishing battery recycling facilities, according to the Department of Energy. The grants will be funded through President Joe Biden's $1 trillion bipartisan infrastructure law, which includes more than $7 billion to bolster the country's battery supply chain.
The Defense Production Act was invoked by the president in April to encourage domestic production of minerals required to make batteries for EVs and long-term energy storage. The order could help companies get federal funding for feasibility studies on projects that extract materials for EV production.
Gina McCarthy, the White House National Climate advisor, said during a call with reporters on Monday that the made-in-America batteries are going to help reduce emissions and create opportunities across the country.
The White House is working to build a national network of EV charging stations and to create tax incentives for consumers who buy electric vehicles. The administration has pledged to replace 600,000 cars and trucks with electric power by the year 2035.
The U.S. is the third-largest market for EV behind China and Europe. According to Canalys, 4% of new cars sold in the U.S. last year were electric.
The Secretary of Energy said in a statement on Monday that the United States should position itself front and center in meeting the growing demand for advanced batteries.
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