Biden Admin. Announces $3.16Bln Deal To Boost US Battery Manufacturing, Supply Chains

WASHINGTON (Pakistan Point News / Sputnik - 03rd May, 2022) The Biden administration is making available $3.16 billion in funding to boost battery- and components-making for electric vehicles (EVs) in the United States as well as to boost relevant supply chains, the Department of Energy announced Monday.

"(The) $3.1 billion in funding from President Biden's Bipartisan Infrastructure Law (is) to make more batteries and components in America, bolster domestic supply chains, create good-paying jobs, and help lower costs for families," the Department of Energy said in a statement.

The administration has signaled that an additional $60 million will be provided to support so-called second-life applications for batteries once used to power EVs, as well as new processes for recycling materials back into the battery supply chain.

"Both funding opportunities are key components of the administration's whole-of-government supply chain strategy to strengthen America's energy independence to reduce our reliance on competing nations and support the President's goal to have electric vehicles make up half of all vehicles sales in America by 2030," the statement said.

With the global lithium-ion battery market expected to grow rapidly over the next decade, the United States was gearing to meet the demand, selling more than 2.5 million plug-in electric vehicles by the end of March, officials said.

"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," US Energy Secretary Jennifer Granholm said in response to the funding for battery-capacity boost.

Battery costs in the United States have fallen more than 90% and since 2008,� energy density and performance have increased rapidly, paving the way for an accelerated transition to zero-emission vehicles, the Department of Energy said.

Responsible and sustainable domestic sourcing of the critical materials used to make lithium-ion batteries - such as lithium, cobalt, nickel, and graphite - will also help avoid or mitigate supply chain disruptions and accelerate domestic production,� the department said.