US Announces $3bn Boost For Domestic Battery Manufacturing, Countering China’s Dominance

Biden administration is making a significant push to strengthen the U.S. battery supply chain and reduce dependence on China. 

The Department of Energy (DOE) announced on Friday plans to award $3 billion to 25 projects across 14 states, aiming to increase domestic of advanced batteries and battery materials.

“This is a much-needed investment in our domestic battery manufacturing capacity,” said Ali Zaidi, White House climate advisor, highlighting the critical role secure minerals play in combating climate change.  

“This sets us up to lead on the next generation of battery technologies,” he added, emphasizing the potential for advancements like solid-state batteries.

The funding targets various aspects of the battery value chain, including:Companies like Albemarle (awarded $67 million) will focus on producing anode materials for next-generation lithium-ion batteries

“Mineral security is essential for climate security,” said Zaidi, emphasising the importance of domestic production in securing both environmental and economic sustainability.

The initiative follows the recent adoption of U.S. EV tax credit rules designed to incentivize battery production and sourcing of critical minerals within the country.

 According to the DOE, the awarded grants are expected to generate $16 billion in total investment for the projects and support the creation of 12,000 jobs in production and construction.

The funding announcement underscores the administration’s commitment to developing domestic resources and reducing reliance on foreign suppliers, particularly China.

Grants totaling $450 million were allocated to companies like SWA Lithium and TerraVolta Resources for projects using Direct Lithium Extraction (DLE) technology to extract lithium from resources like brine.

 Revex Technologies, co-founded by Lundin Mining, received $145 million to utilize waste from the sole operating U.S. nickel mine, aiming to supply domestic nickel for battery production.

South32 Hermosa received $166 million for mining high-purity manganese sulfate monohydrate (HPMSM), a crucial component for EV battery chemistries, currently dominated by Chinese production.

This targeted investment in domestic extraction and processing aims to create a more robust and secure battery supply chain for the U.S., ultimately fostering the development and production of electric vehicles within the country.

Boluwatife Enome

Follow us on: