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US Dept of Energy announces $3 billion toward EV battery manufacturing and supply chain

The US Department of Energy announced today a new $3 billion program going toward battery manufacturing and supply chain to support the transition to electric vehicles.

The money is coming from the giant infrastructure bill from last year, which also included $7.5 billion for electric transit vehicles and another $7.5 billion for electric vehicle charging infrastructure.

Now some is also going toward sourcing batteries in America:

The U.S. Department of Energy (DOE) today announced $3.1 billion in funding from President Biden’s Bipartisan Infrastructure Law to make more batteries and components in America, bolster domestic supply chains, create good-paying jobs, and help lower costs for families. The infrastructure investments will support the creation of new, retrofitted, and expanded commercial facilities as well as manufacturing demonstrations and battery recycling. DOE is also announcing a separate $60 million to support 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.

US Secretary of Energy Jennifer M. Granholm commented on today’s announcement:

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. President Biden’s historic investment in battery production and recycling will give our domestic supply chain the jolt it need to become more secure and less reliant on other nations—strengthening our clean energy economy, creating good paying jobs, and decarbonizing the transportation sector.

Here are some of the programs that distribute funding for the EV battery supply chain in the US:

As we reported last month, the Biden Administration has recently been meeting with top US auto executives, including Tesla’s Elon Musk and GM’s Mary Barra, to discuss how to help accelerate the EV transition in the US.

It comes after the Biden Administration has made several massive investments to try to address the challenge from different angles.

Recently, the administration appears to be particularly focused on bringing more nickel, lithium, graphite, and cobalt mining to the US to build a domestic battery supply chain.

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