Biden Grants $2.8 Billion Funding to Increase EV Battery Production

In an effort to reduce dependency on Chinese imports, the Biden administration announced grants worth $2.8 billion on Wednesday to promote domestic manufacturing of batteries and the minerals used to produce them for use in electric vehicles.

Twenty American manufacturers and processing companies, including Albemarle Corp, will receive funding from the United States Department of Energy to improve domestic lithium, graphite, and nickel mining, develop the first large-scale U.S. lithium processing facility, build cathode and other battery part facilities, and increase battery recycling.

At least 12 states will benefit from these grants, representing the latest effort by the Biden administration to reduce reliance on China and other countries to supply the green energy revolution.

“As the world transitions from a fossil fuel to a clean energy powered economy, we cannot trade dependence on oil from autocrats like (Russian President Vladimir) Putin to dependence on critical minerals from China,” a senior administration official told reporters.

Companies that receive these grants vary from those who may be able to fund their projects to those that will use the funds to save their U.S. growth plans. However the funding does not help those in the mining industry who are having trouble getting permits.

By 2030, President Joe Biden hopes to see 500,000 new electric vehicle charging stations and 50% of all new vehicles purchased in the United States to be electric or plug-in hybrid electric models. But he has been neutral on the proposal to ban the sale of gasoline-powered vehicles by 2030.

According to a fact sheet released by the White House, the United States and its allies do not manufacture the necessary materials required in EV batteries.

“China currently controls much of the critical mineral supply chain and the lack of mining, processing, and recycling capacity in the U.S. could hinder electric vehicle development and adoption, leaving the U.S. dependent on unreliable foreign supply chains,” said the White House.

Original source material for this article taken from here