The Department of Energy announced $3.1 billion in funding on Monday to boost U.S. production of high-capacity batteries and battery parts. In a 2pm statement in Detroit, Michigan, where Granholm was governor from 2003 to 2011, the US Secretary of Energy introduced the Biden Administration's battery plans. Batteries are essential to providing clean energy and renewable resources around the clock. Improving battery technology and storage capabilities will help reduce our dependence on foreign oil consumption and greenhouse gas emissions. The minerals and rare earth metals used in batteries are concentrated in a few places around the world. Most of the materials used in the U.S. come from outside of the country. China has mining contracts and operations set up in many of the mineral rich areas of the global south, which makes it the majority of our lithium-ion battery imports. The US imports 80% of its rare-earth metals from China. The new DOE funding comes amid soaring fossil fuel prices prompting renewed calls for the U.S. to boost its domestic energy capacity and an ongoing federal push for vehicle electrification. An executive order was issued by the Biden administration to set a goal for electric vehicles to make up half of all car sales. To meet that goal alone, we will need a larger battery supply and all of the minerals needed to build those batteries. We need to move away from fossil fuels as soon as possible to avoid the consequences of climate change. It is difficult to move towards all electric cars or more battery storage across the electric grid. Money for the new DOE battery investment comes from Biden's $1 trillion infrastructure plan. The majority of the funding is focused on grants to support the creation of new, retrofitted, and expanded commercial facilities as well as manufacturing demonstrations and battery recycling, according to the DOE.
The Bipartisan Infrastructure Law directs more than $7 billion to strengthen the U.S. battery.
More materials will have to be taken. According to an analysis by the International Energy Agency, we will need to increase the overall mineral supply six-fold to fulfill growing global battery demand over the next few decades. That number is way higher for some minerals. According to the report, demand for graphite will increase 25x over the next 20 years, while demand for lithium will go up by 70.
The U.S. government knows that recycling can solve the scarcity issues. At the end of March, Biden invoked a Cold War-era law to try to boost domestic mineral and metals mining.
Fossil fuels pose a huge threat to every species on the planet. The risk of damaging species and habitats on a smaller scale is associated with expanding battery production. A study published in the journal Proceedings of the Royal Society B found that the populations of two species of Flamingo in the salt flats of Chile were reduced by mining.
The current mineral mining boom has made existing global inequalities worse, as in Chile where the water supply and Indigenous communities are at risk. In the Democratic Republic of the Congo, where dangerous mining operations have killed children working in the mines and led to lawsuits against tech companies, there is a chance.
The DOE is aiming to move towards a better battery supply chain with this new funding announcement. Hopefully, that vision is realized.
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