Biden Administration Pours $3.5 Billion Into Domestic Battery Manufacturing

The Biden administration has announced up to $3.5 billion in funding from the Bipartisan Infrastructure Law to boost domestic production of advanced batteries and battery materials. This investment aims to strengthen America’s critical mineral and battery supply chains, create good-paying union jobs, and support the transition to clean energy.

The funding was announced by the Department of Energy two years after President Biden signed the Infrastructure Law. It will support the creation and expansion of facilities for processing critical battery minerals, manufacturing battery components, and assembling battery cells and packs.

According to Energy Secretary Jennifer Granholm, this investment will “boost our global competitiveness, maintain and create good-paying jobs, and strengthen our clean energy economy.” She said a robust domestic battery supply chain will reduce reliance on imports from foreign entities.

The $3.5 billion is the second phase of a $6 billion total investment under the Infrastructure Law to build domestic battery manufacturing capacity. It prioritizes technologies beyond lithium batteries and aims to increase processing of battery materials and manufacturing of components in the US.

The funding opportunity focuses on delivering benefits for American workers through collective bargaining agreements and high-wage jobs. It also aims to advance environmental justice by targeting investments in underserved communities.

Concept papers are due January 9, 2024 and full applications are due March 19, 2024. The Biden administration plans to continue investing in domestic battery supply chains through the Infrastructure Law to support the transition to electric vehicles and clean energy.

Our Thoughts

In my opinion, this is a good step as China is currently the global leader in EV battery manufacturing. Boosting domestic production will help the US compete in this critical energy industry.

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