Bipartisan Infrastructure Law Boosts in house battery production with $3.16 Billion

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Joe Biden signs the $1 trillion bipartisan infrastructure bill November 15, 2021 in Washington, DC.

Bipartisan Infrastructure Law Boosts in house battery production with $3.16 Billion

The u.s. deparTmenT of energy (doe) announced $3.1 billion in financing from President Biden's Bipartisan Infrastructure Act to expand battery and component manufacturing in the United States, strengthen domestic supply chains, create good-paying jobs, and help families save money.

New, refurbished, and enlarged commercial facilities, as well as manufacturing demonstrations and battery recycling, will benefit from the infrastructure investments. DOE is also announcing a $60 million grant to support second-life uses for batteries that have previously been used to power electric vehicles, as well as novel recycling procedures for materials that have been used in the battery supply chain.

Both funding opportunities are critical components of the Administration's whole-of-government supply chain strategy to strengthen America's energy independence, reduce our reliance on competing countries, and support the President's goal of electric vehicles accounting for half of all vehicle sales in the United States by 2030.

"We can increase our competitiveness and electrify our transportation system by positioning the United States front and centre in fulfilling the growing need for sophisticated batteries," stated U.S. Secretary of Energy Jennifer M. Granholm.

"President Biden's unprecedented investment in battery manufacture and recycling will provide the jolt our domestic supply chain needs to become more secure and less reliant on other countries—strengthening our clean energy economy, creating good-paying jobs, and decarbonizing the transportation sector." DOE is collaborating with industry to prepare the United States for rising market demand, as the global lithium-ion battery market is likely to develop substantially over the next decade. Over 2.5 million plug-in electric vehicles had been sold in America by the end of March 2022, with more than 800,000 of those sold since President Biden assumed office.

Since 2008, battery costs have dropped by more than 90%, while energy density and performance have grown dramatically, clearing the path for a faster transition to zero-emission vehicles.

Responsible and sustainable domestic procurement of important lithium-ion battery ingredients, including lithium, cobalt, nickel, and graphite, can help avoid or reduce supply chain disruptions and speed battery manufacture in America to meet demand and encourage the adoption of electric vehicles.

"For far too long, foreign countries have been supporting new technology faster than the United States. We are at a turning point in our race to produce the next generation of electric vehicles and batteries in the United States, as well as to maintain Michigan's automotive leadership in these vehicles.

This financing will help us win this race by investing in our supply chain and manufacturing here at home, thanks to

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our bipartisan efforts in Congress and the President's leadership. Senator Debbie Stabenow stated, "Our employees are the best in the world, and nothing is more American than ensuring that our products and technologies are made in America" (MI).

Senator Catherine Cortez Masto of New Mexico remarked, "I obtained provisions in the Bipartisan Infrastructure Law to promote the domestic essential mineral supply chain used in battery production" (N.V.). "The infrastructure law might bring important new investments to Nevada's innovation sector, which is at the forefront of battery manufacturing and recycling."

These incentives to expand battery manufacturing in the United States will help us generate good-paying jobs, boost our economic competitiveness, and combat climate change. I applaud Secretary Granholm and the Department of Energy's committed team for moving this priority forward so quickly." "The future of mobility is electric," said U.S. Senator Gary Peters. "This support might help to guarantee Michigan remains at the vanguard of innovation by strengthening our supply chains for sophisticated battery technologies required to deploy the next all-electric fleet" (MI). "I was proud to assist obtain this financing through the Bipartisan Infrastructure Law, which will help our automakers fulfil the growing demand for cleaner, safer cars by reducing our reliance on foreign producers like the Chinese government for these essential technologies."

"Bringing our supply chain home, investing in domestic production of minerals and materials for electric vehicle batteries, and creating good-paying, union jobs here in Michigan and the United States is critical to establishing a new generation of mobility in this country," said U.S. Representative Debbie Dingell (MI-12).

"The Biden Administration's commitment to ensuring that half of all auto sales are electric vehicles by 2030 is demonstrated by this announcement, which was made possible by financing given by my battery material legislation established under the IIJA." We still have a long road to travel to reach that goal, but this is a significant step forward. I will continue to bring together labor, environmental advocates,

industry leaders, and government officials in the days and weeks ahead to move us forward."

"Many frontline communities in the 13th Congressional District have already experienced the catastrophic effects of climate change, underscoring the critical need for a just and equitable energy transition," said U.S. Representative Rashida Tlaib (MI13). "I appreciate Secretary Granholm and the Department of Energy coming to our communities and investing in the future by announcing money to expand battery manufacture.

This type of funding is required to ensure that everyone has access to a green future. I'm excited to keep working with the DOE to guarantee that we deliver clean, renewable energy and a livable Earth for future generations."

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, is aligned with the funding opportunities for "Battery Materials Processing and Battery Manufacturing" and "Electric Drive Vehicle Battery Recycling and Second Life Applications." The blueprint lays forth a plan to boost domestic battery supply by 2030 by equitably developing a strong and varied battery workforce.

Applicants for new funding opportunities will be shown and tried to consider how project benefits can flow to relevant disadvantaged communities, in line with President Biden's Justice40 initiative, which sets a goal for 40 percent of the benefits of Federal investments in climate and clean energy to flow to disadvantaged communities.

President Biden's Administration reiterated this commitment in a letter to Americans from the Department of Energy's Office of Economic Impact and Diversity.

AMERICA'S SUPPLY CHAINS MUST BE STRENGTHENED

DOE issued a 100-day review of the large-capacity battery supply chain in response to President Biden's Executive Order on America's Supply Chains, recommending the formation of domestic production and processing capabilities for critical materials to support a fully domestic end-to-end battery supply chain, as well as investments in battery recycling and the circular economy to increase domestic supply and reduce the future need for new extraction and raw materials. includes generating and recycling essential minerals without new extraction or mining, as well as procuring resources for domestic manufacturing.

The funding opportunities are the first to be announced as a result of a collaboration between DOE's Office of Energy Efficiency and Renewable Energy and the new Office of Manufacturing and Supply Chains, which was established as part of DOE's organizational realignment to ensure that the Department has the structure it needs to effectively implement the clean energy investments in the Bipartisan Infrastructure Act and the Energy Act of 2020.

$7.5 billion for electric vehicle chargers, $5 billion for electric transit buses, and $5 billion for clean and electric school buses are all included in the Bipartisan Infrastructure Act.