This week, U.S. President Joe Biden signed the Bipartisan Infrastructure Act, announcing $3.1 billion in funding to boost U.S. battery manufacturing.
This infrastructure investment is designed to increase U.S.-made production of batteries and components, strengthen domestic supply chains, create high-paying jobs, reduce costs, and more. The program will support new construction, retrofitting and expansion of commercial facilities, as well as manufacturing demonstrations and battery recycling activities. According to a recent report by PV Intel, California is an example of a booming U.S. battery market, with a significant increase in installed solar capacity in the state over the past year.
The U.S. Department of Energy (DOE) also announced an additional $60 million to support secondary applications for batteries once used in electric vehicles, as well as to develop new processes for recycling materials into the battery supply chain. The grant is part of the U.S. government's strategy to strengthen supply chains and reduce reliance on competing nations. According to a report by Wood Mackenzie, China is currently the global market leader in lithium-ion battery production. While the U.S. supports the development of its battery industry, China is investing heavily in building more manufacturing facilities to expand its dominance of the industry. Second, the moves will support the president's goal of making electric vehicles half of all North American car sales by 2030.
“Positioning the U.S. front and center to meet the growing demand for advanced batteries is one way we can improve our competitiveness and electrify our transportation system,” said U.S. Secretary of Energy Jennifer M. Granholm. The historic investment approved in recycling will give our domestic supply chain the necessary stimulus to become more secure and less dependent on other countries - which will drive our clean energy economy, create high-paying jobs, enable transportation sector to decarbonize.”
With the increasing popularity of electric vehicles, the global lithium-ion battery market is expected to witness rapid growth over the next decade. In addition to increased R&D and manufacturing efforts, responsible and sustainable domestic sourcing of key materials such as lithium, cobalt, nickel and graphite will help avoid or mitigate supply chain disruptions and accelerate U.S. battery production.
“I pledge that the provisions of the Bipartisan Infrastructure Act will support the primary domestic mineral supply chain for battery production,” said U.S. Senator Catherine Cortez Masto (Nevada), “Innovation in Nevada’s battery manufacturing and recycling industries The economy is leading the way, and infrastructure laws can bring vital new investment to the state."
Grants for "Battery Materials Processing and Battery Manufacturing" and "Electric Vehicle Battery Recycling and Secondary Applications" are in line with the National Lithium Battery Blueprint, mandated by the Federal Advanced Battery Alliance and led by the Departments of Energy, Defense, Commerce, and State "be consistent.
These grants are the first to be launched jointly by the DOE Office of Energy Efficiency and Renewable Energy and the newly created Office of Manufacturing and Supply Chain. The office was created by the Department of Energy's Restructuring Division to ensure that the Department of Energy has the necessary organizational structure to effectively implement clean energy investments in the Bipartisan Infrastructure Act and the Energy Act of 2020.