Biden administration to spend over $3 billion on domestic battery manufacturing

The US is to provide around US$3.16 billion in grants towards the production of key battery metals, including lithium, cobalt and nickel, as the Biden administration seeks to boost domestic manufacturing of advanced batteries used in electric vehicles and energy storage.

The grants, announced by the US Energy Department’s Office of Manufacturing and Energy Supply Chains, will fund new, retrofitted or expanded processing facilities, as well as manufacturing demonstrations and battery recycling.

A separate $60 million programme for battery recycling is also being made available, the Energy Department added.

The money comes from the $550 billion infrastructure bill signed into law last year, which earmarked $7 billion for batteries and the creation of a US battery materials supply chain.

“Positioning the United States front and centre in meeting the growing demand for advanced batteries is how we boost our competitiveness and electrify our transportation system,” Energy Secretary Jennifer Granholm said.

Under President Biden, the US is seeking to electrify half of all new domestically manufactured cars by 2030. The current administration’s latest funding injection for the battery sector follows a White House announcement in March invoking the 1950 Defence Production Act to encourage output of lithium, nickel, graphite, cobalt and manganese.