Key Points
- Biden administration awarded over $3 billion to support 25 projects in 14 states for U.S. EV batteries and critical materials.
- The administration plans to reduce China’s dominance in battery materials and focus on an end-to-end supply chain for EV batteries in the U.S.
- The grants will generate 8,000 construction jobs and 4,000 permanent jobs.
- Solid-state batteries are viewed as a promising next step in clean energy storage.
The Biden administration has announced over $3 billion in grants to U.S. companies to enhance the domestic production of advanced batteries and critical materials used in electric vehicles (EVs). This initiative is part of the administration’s broader strategy to curb China’s dominance in global battery production, essential for EVs and other electronics.
The funding will support 25 projects across 14 states, including key battleground states like Michigan, North Carolina, and Ohio, as well as Texas, South Carolina, and Louisiana. This is the second round of funding under the bipartisan infrastructure law passed in 2021. The first round allocated $1.8 billion for 14 ongoing projects. This round’s funding total reflects a reduction, as several projects were withdrawn or rejected during negotiations.
The initiative is part of President Joe Biden and Vice President Kamala Harris’ commitment to electric vehicle production to combat climate change and bolster U.S. manufacturing. The funds will primarily benefit companies involved in processing key materials like lithium and graphite, as well as those manufacturing components for EV batteries. According to Lael Brainard, White House economic adviser, the grants aim to establish an end-to-end supply chain for batteries in the U.S., from mining and processing to recycling.
The grants align with the administration’s broader goal of reshaping the EV market and reducing reliance on China, which has dominated the global market for processing critical minerals such as lithium and rare earth elements. The U.S. is responding by enforcing higher tariffs on Chinese imports of essential materials like graphite and offering incentives under the 2022 climate law to encourage domestic sourcing for EVs sold in the U.S.
The total U.S. investment in critical minerals and battery supply chains has now reached $35 billion, with over $100 billion in private sector investments leveraged since Biden took office. The grants will help create 8,000 construction jobs and over 4,000 permanent jobs. Experts like Matthew McDowell, an engineering professor at Georgia Tech, are optimistic about the future of solid-state batteries, which could outperform current lithium-ion batteries in energy storage.
Energy Secretary Jennifer Granholm emphasized that the administration is focused on ensuring battery production happens domestically, helping power the nation’s electrical grid, homes, businesses, and the auto industry. She said, “We’re committed to making batteries in the United States of America.”
