US Announces $3.5 Billion for Domestic Battery Manufacturing

Navid

Navid

Wed Nov 15, 2023

Reuters reporting – The U.S. Department of Energy announced the allocation of up to $3.5 billion to enhance domestic battery production and the manufacturing of battery materials. This funding, derived from the infrastructure law signed by President Joe Biden in 2021, is aimed at bolstering battery manufacturing and supply chains in the United States. The focus will be on expanding domestic facilities for critical minerals, advanced technologies, and lithium-based technologies.

U.S. Secretary of Energy Jennifer Granholm highlighted this initiative as a strategy to position the United States at the forefront of the growing demand for advanced batteries. This move is seen as a way to boost global competitiveness, create and maintain good-paying jobs, and strengthen the country’s clean energy economy.

This decision comes in the context of China’s dominance in the global electric vehicle (EV) battery supply chain. Concerns have been raised, especially following China’s recent restrictions on the export of graphite, a key anode material, which has caused uncertainty in the market. This situation led two Democratic U.S. senators to urge the Energy Department to take action in enhancing U.S. battery manufacturing capabilities and advancing next-generation battery research, specifically to counter China’s dominance and export controls. This plea was made in a letter to the Department.

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