U.S. battery manufacturing got an important boost this week with the announcement of $3.1 billion in new funding from President Joe Biden’s Bipartisan Infrastructure Law. The infrastructure investment is expected to increase American-made batteries and components, bolster domestic supply chains, create good-paying jobs, and lower costs.
The idea behind the new funding is to support the creation of new, retrofitted and expanded commercial facilities as well as manufacturing demonstrations and battery recycling. The Department of Energy has also announced 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.
These funding opportunities are part of the government’s strategy to bolster America’s supply chain and reduce the reliance on competing nations. Currently, China stands as the leader in the global lithium-ion battery production market, which many have seen as a potential national security issue as EVs become more popular and available. Setting up a stronger domestic manufacturing situation will help avoid or mitigate supply chain disruptions and accelerate battery production in America. Still, while the U.S. is supporting its battery industry, China is also investing heavily to build out more manufacturing facilities to extend its dominance, making new funding more important than ever.
“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 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.”