Biden administration tips-in $3b funding to boost lithium-ion batteries
The Joe Biden-led US Government has announced it’s making an estimated $3.16 billion investment into lithium-ion battery development in the country.
In an effort to be more independent and less reliant on energy from Russia and other competing nations, especially in the current times of disturbed global markets, the Biden administration’s funding will go towards securing the country’s battery supply chain and building capacity.
Infrastructure implementation coordinator and senior Biden adviser Mitch Landrieu told reporters the investment in the production helps make the goal of electrifying all new vehicles achievable.
“The bipartisan infrastructure law directs more than $7 billion to strengthen the US battery supply chain that will help us avoid disruptions, lower the cost and accelerate battery production in America to meet this demand.” he said.
The $550 billion infrastructure bill, signed into law last year, reserved $7 billion for batteries and the creation of a US supply chain to produce them.
A separate $60 million program for battery recycling is also being set up.
National economic council director Brian Deese says it’s a breakthrough for the country.
“This will help to underwrite that private investment we need in the US to build a reliable industrial capacity and, for the first time, have a domestic end-to-end supply chain in electric vehicles and electric vehicle battery production,” he said.
Biden’s promise since beginning
Under the Biden administration, it has always been a priority to kick-start the domestic production of battery minerals, with goals set for half of all cars sales to be electric by 2030.
As of the end of March 2022, more than 2.5 million plug-in electric vehicles had been sold in the US, with more than 800,000 of those since President Biden took office, showing the prioritisation is in full swing.
US secretary of energy Jennifer Granholm says Biden’s promises are historic and important for the future.
“Positioning the US front and centre in meeting the growing demand for advanced batteries is how we boost our competitiveness and electrify our transportation system,” she said.
“President Biden’s historic investment in battery production and recycling will give our domestic supply chain the jolt it needs to become more secure and less reliant on other nations —strengthening our clean energy economy, creating good paying jobs, and decarbonising the transportation sector.”
Timely investment for the US
According to experts, the global lithium-ion battery market is expected to grow vastly over the next decade, making the investment extremely timely for the Biden administration.
Due to costs of batteries falling more than 90%, along with energy density and performance increasing quickly, a transition to zero emission vehicles nears more and more every day.
Through the $3.16 billion investment, the domestic sourcing of lithium-ion battery critical minerals will help halt supply chain disruptions and enable battery production in the US to meet the ongoing rising demand.
US senator Debbie Stabenow says the country has been stalling in regards to funding lithium-ion battery development.
“For too long, other countries have been outpacing the US in funding new technologies. We are at a critical moment in our competition to build the next generation of electric vehicles and batteries here in America and to secure Michigan’s automotive leadership in these next generation vehicles,” she said.