
Energy Department Allocating $3.1B to Support Battery Supply Chain

WASHINGTON — The U.S. Department of Energy is making $3.1 billion in funding from the bipartisan infrastructure law available to manufacturers and other commercial entities involved in making, retrofitting and recycling lithium-ion batteries.
The investment is part of the Biden administration’s effort to have more batteries and components made in the U.S. by bolstering domestic supply chains while creating good-paying jobs and lowering costs to consumers, department officials said.
The Energy Department is also making a separate $60 million available to support “second-life” applications for batteries once they’ve been used to power electric vehicles, as well as new processes to recycle 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 and support the president’s goal to have electric vehicles make up half of all vehicles sales in America by 2030, said Energy Secretary Jennifer Granholm in a written statement.
“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,” she explained.
“President Biden’s historic investment in battery production and recycling will give our domestic supply chain the jolt it needs to become more secure and less reliant on other nations — strengthening our clean energy economy, creating good paying jobs, and decarbonizing the transportation sector,” she said.
According to a recent Energy Department report, National Blueprint for Lithium Batteries, 2021-2030, the global lithium-ion battery market is expected to grow rapidly over the next decade.
As of the end of March, 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 Biden took office in January 2019.
The report notes that battery costs have fallen more than 90% since 2008, and energy density and performance have increased rapidly, these developments are helping to pave the way for an even faster transition to zero-emission vehicles.
But to seal the deal, Granholm and other officials say, responsible and sustainable domestic sourcing of the critical materials used to make lithium-ion batteries – such as lithium, cobalt, nickel, and graphite – is a must.
“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,” said Sen. Catherine Cortez Masto, D-Nev., who was among those who made sure funding for the sector was included in the infrastructure package.
“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,” she said.
Sen. Gary Peters, D-Mich., another supporter of the funding, said in a statement that he believes the funding announced Monday “could help to ensure Michigan remains on the forefront of innovation by shoring up our supply chains for advanced battery technologies.”
“The future of mobility is electric,” Peters said. “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.”
Of course, Democrats aren’t the only people on Capitol Hill pushing to accelerate production of battery materials that are needed to power electric vehicles.
Republicans Lisa Murkowski, R-Alaska, James Risch, R-Idaho, and Bill Cassidy, R-La., and Democrat Joe Manchin, D-W.Va. signed a bipartisan letter to Biden in March urging him to invoke the Defense Production Act to bolster America’s critical mineral supply chains.
“In order to address the threats to our national security, we respectfully request that you invoke the Defense Production Act to accelerate domestic production of lithium-ion battery materials, in particular graphite, manganese, cobalt, nickel, and lithium,” the letter said. “Our dependence on foreign-sourced cobalt and lithium is elevated as the processing of both is dominated by China.”
Between 2017 and 2020, China, a geopolitical competitor of the U.S. that recently introduced supply chain disrupting lockdowns in a bid to stamp out COVID-19 outbreaks, accounted for 78% of rare-earth compounds and metals imports to the U.S., according to the U.S. Geological Survey.
Dan can be reached at [email protected] and at https://twitter.com/DanMcCue.
In The News
Health
Voting
Renewable Energy
NATIONAL HARBOR, Md. — It almost seems here in Washington that the debate over energy, over the future of fossil... Read More
NATIONAL HARBOR, Md. — It almost seems here in Washington that the debate over energy, over the future of fossil fuels versus renewables, never changes. Most everyone these days will advocate for an “all of the above” solution to meet the nation’s future energy needs and... Read More
RAVENSWOOD, W. Va. — Like a lot of communities in America’s heartland, Jackson County, West Virginia, was built on natural... Read More
RAVENSWOOD, W. Va. — Like a lot of communities in America’s heartland, Jackson County, West Virginia, was built on natural resources. Timber and energy wrought from the ground helped sustain and grow its population, and the arrival of manufacturing in the mid-1950s — in the guise... Read More
WASHINGTON — The White House and Dept. of Transportation have opened applications for the first round of an eventual $2.5... Read More
WASHINGTON — The White House and Dept. of Transportation have opened applications for the first round of an eventual $2.5 billion in funding to ensure the creation of new electric vehicle and alternative fueling infrastructure throughout the United States. Eligible applicants include state, city, town and... Read More
MINNEAPOLIS, Minn. — Global food and agriculture giant Cargill has signed a 50 MW power purchase agreement with Apex Clean... Read More
MINNEAPOLIS, Minn. — Global food and agriculture giant Cargill has signed a 50 MW power purchase agreement with Apex Clean Energy to power operations in Illinois. The power will come from the 300 MW Goose Creek Wind project, which Apex is currently developing in Piatt County,... Read More
WASHINGTON — The annual ARPA-E Energy Innovation Summit and technology showcase is coming to the Gaylord National Convention Center in... Read More
WASHINGTON — The annual ARPA-E Energy Innovation Summit and technology showcase is coming to the Gaylord National Convention Center in National Harbor, Maryland, later this week. The three-day event, now in its 13th year, is being held March 22-24. The aim of the summit is to... Read More
AVONDALE, La. — Shell, one of the world’s largest oil companies, is partnering with a Louisiana-based expert in wind turbine... Read More
AVONDALE, La. — Shell, one of the world’s largest oil companies, is partnering with a Louisiana-based expert in wind turbine technology to create the Shell Gulf Wind Technology Accelerator, a program aimed at addressing the challenging wind conditions in the Gulf of Mexico in advance of... Read More