The White House announced on Wednesday that the US Department of Energy will be awarding billions of dollars in grants to shore up domestic battery manufacturing. A new government-wide initiative to strengthen supply chains is being launched by the Biden administration.
It was the latest move by President Biden to support the shift from polluting gas-powered cars to emissions-free electric cars with the goal of making 50 percent of all new cars sold in 2030 electric. There is a warning about the US supply of key minerals needed to fuel the EV boom.
20 manufacturing and processing companies will get grants from the Department of Energy. According to the White House, these projects will support the production of enough materials for millions of electric vehicle batteries each year.
20 manufacturing and processing companies will get grants from the Department of Energy.
The funds will be used to build the first large-scale, commercial lithium electrolyte salt production facility in the US. An estimated 600,000 EV batteries a year will be supplied by the first commercial scale domestic Silicon oxide production facility that will be created by the DOE. The DOE will provide funding for the installation of the first US facility for the production of lithium ironphosphate.
The American Battery Material Initiative is being launched by the White House in order to secure a reliable and sustainable supply of critical minerals used for power, electricity, and electric vehicles.
The EV production in the US is still in its very early stages of development. The Democrats' new tax and climate bill devotes $400 billion to clean energy initiatives over the next 10 years, including EV tax credits and financing for companies that manufacture clean cars in the US Over a dozen other states are expected to follow California's lead in banning the sale of new gas-powered vehicles.
The only EV that will be eligible for the credit is one that is made in North America using batteries with minerals dug out of the ground in the US. The auto industry's heavy reliance on battery materials and components from China makes these requirements difficult to achieve.
The automotive industry is concerned about the insufficient situation in the country. The US market is exposed to the risk of being impacted by supply chains outside of US control due to the lack of processing capacity for EV battery materials.
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