Demand Management, Industrial - October 24, 2022
DOE Awards $2.8 Billion to Increase EV Batteries, Electric Grid
The Biden-Harris Administration, through the U.S. Department of Energy (DOE), announced the first set of projects funded by the President’s Bipartisan Infrastructure Law to expand domestic manufacturing of batteries for electric vehicles (EVs) and the electrical grid and for materials and components currently imported from other countries.
The 20 companies will receive a combined $2.8 billion to build and expand commercial-scale facilities in 12 states to extract and process lithium, graphite, and other battery materials, manufacture components, and demonstrate new approaches, including manufacturing components from recycled materials.
The investment will be matched by recipients to leverage a total of more than $9 billion to boost American production of clean energy technology and support President Biden’s national goals for electric vehicles to make up half of all new vehicle sales by 2030 and to transition to a net-zero emissions economy by 2050.
“This is truly a remarkable time for manufacturing in America, as President Biden’s Agenda and historic investments supercharge the private sector to ensure our clean energy future is American-made,” said U.S. Secretary of Energy Jennifer M. Granholm in a statement. “Producing advanced batteries and components here at home will accelerate the transition away from fossil fuels to meet the strong demand for electric vehicles, creating more good-paying jobs across the country.”
The Biden-Harris Administration has taken swift action to secure a reliable and sustainable battery supply chain. The funded projects announced include U.S. processing and recycling of critical minerals to support domestic manufacturing.
The funding for the selected projects will support:
- Developing enough battery-grade lithium to supply approximately 2 million EVs annually
- Developing enough battery-grade graphite to supply approximately 1.2 million EVs annually
- Producing enough battery-grade nickel to supply approximately 400,000 EVs annually
- Installing the first large-scale, commercial lithium electrolyte salt (LiPF6) production facility in the United States
- Developing an electrode binder facility capable of supplying 45% of the anticipated domestic demand for binders for EV batteries in 2030
- Creating the first commercial-scale domestic silicon oxide production facilities to supply anode materials for an estimated 600,000 EV batteries annually
- Installing the first lithium iron phosphate cathode facility in the U.S.