The U.S. Department of Energy announced on Wednesday a funding allocation of up to $3.5 billion to enhance domestic production of batteries and battery materials, as outlined in the infrastructure law signed by President Joe Biden in 2021. The objective of this funding is to strengthen battery manufacturing and supply chains by expanding domestic facilities focused on critical minerals, next-generation technologies, and lithium-based technologies, among others.
U.S. Secretary of Energy Jennifer Granholm emphasized the significance of positioning the United States at the forefront to meet the growing demand for advanced batteries. She stated, “Positioning the United States front and center to meet the growing demand for advanced batteries is how we boost our global competitiveness, maintain and create good-paying jobs, and strengthen our clean energy economy.”
This investment, with a specific emphasis on retaining and creating good-paying union jobs in the manufacturing workforce, is administered by the DOE’s Office of Manufacturing and Energy Supply Chains (MESC). It aligns with the Biden-Harris Administration’s goals, including achieving a net-zero emissions economy by 2050, having electric vehicles constitute half of all new light-duty vehicle sales by 2030, and building a robust domestic supply chain.
This funding opportunity marks the second phase of the $6 billion total provided by the Bipartisan Infrastructure Law. In the initial phase, the DOE granted awards to fifteen projects catalyzing over $5.8 billion in public/private investment. Concept papers, mandatory for application, are due on January 9, 2024, with full applications expected by March 19, 2024.
Acknowledging China’s dominance in the global electric vehicle battery supply chain, Secretary Granholm’s announcement comes in response to concerns raised by two Democratic U.S. senators earlier in the month. The senators had written to the Energy Department, urging measures to strengthen U.S. battery manufacturing and next-generation battery research, citing China’s dominance and export controls, according to a letter seen by Reuters.
Information for this briefing was found via Reuters and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.