U.S. to Spend $3.16 Billion to Boost Domestic Battery Manufacturing, Supply Chains

WASHINGTON — The U.S. Department of Energy announced $3.1 billion in funding from President Biden’s Bipartisan Infrastructure Law to make more batteries and components in America, bolster domestic supply chains, create good-paying jobs, and help lower costs for families.

The infrastructure investments will support the creation of new, retrofitted, and expanded commercial facilities as well as manufacturing demonstrations and battery recycling. DOE is also announcing a separate $60 million to support second-life applications for batteries once used to power EVs, as well as new processes for recycling materials back into the battery supply chain. Both funding opportunities are key components of the Administration’s whole-of-government supply chain strategy to strengthen America’s energy independence to reduce our reliance on competing nations and support the President’s goal to have electric vehicles make up half of all vehicles sales in America by 2030.   

“Positioning the United States front and center in meeting the growing demand for advanced batteries is how we boost our competitiveness and electrify our transportation system,” said U.S. Secretary of Energy Jennifer M. Granholm. “President Biden’s historic investment in battery production and recycling will give our domestic supply chain the jolt it need to become more secure and less reliant on other nations—strengthening our clean energy economy, creating good paying jobs, and decarbonizing the transportation sector.” 

With the global lithium-ion battery market expected to grow rapidly over the next decade, DOE is working with industry to prepare the United States for increased market demand. As of the end of March 2022, more than 2.5 million plug-in electric vehicles have been sold in America, with more than 800,000 of those having been sold since President Biden took office.

Battery costs have fallen more than 90% since 2008, and energy density and performance have increased rapidly, paving the way for an accelerated transition to zero-emission vehicles. Responsible and sustainable domestic sourcing of the critical materials used to make lithium-ion batteries—such as lithium, cobalt, nickel, and graphite—will help avoid or mitigate supply chain disruptions and accelerate battery production in America to meet this demand and support the adoption of electric vehicles.   

“I secured provisions in the Bipartisan Infrastructure Law to support the domestic critical mineral supply chain used in battery production,” said U.S. Senator Catherine Cortez Masto (NV). “Nevada’s innovation economy is at the forefront of battery manufacturing and recycling, and the infrastructure law could bring vital new investments to the state. These grants to grow U.S. battery manufacturing are going to create good-paying jobs, spur our economic competitiveness, and help us combat the climate crisis.” 

“The future of mobility is electric – and this support could help to ensure Michigan remains on the forefront of innovation by shoring up our supply chains for advanced battery technologies necessary to deploy the next all-electric fleet,” said U.S. Senator Gary Peters of Michigan. “I was proud to help secure this funding through the Bipartisan Infrastructure Law to lessen our dependence on foreign producers like the Chinese government for these critical technologies – and help our automakers meet the growing demand for cleaner, safer cars.” 

The “Battery Materials Processing and Battery Manufacturing” and “Electric Drive Vehicle Battery Recycling and Second Life Applications” funding opportunities are aligned with the National Blueprint for Lithium Batteries, authored by the Federal Consortium for Advanced Batteries, and led by DOE and the Departments of Defense, Commerce, and State.

The blueprint details a path to bolstering the domestic battery supply by equitably creating a robust and diverse battery workforce by 2030. In alignment with President Biden’s Justice40 initiative, establishing a goal that 40% of the benefits of Federal investments in climate and clean energy flow to disadvantaged communities, applicants for new funding opportunities will be prompted to consider how project benefits can flow to relevant disadvantaged communities. DOE’s Office of Economic Impact and Diversity today issued a letter to Americans that reiterates this mandate as a priority for President Biden’s Administration.