DOE Funds $2.8 Billion for U.S. EV Battery Manufacturing


The Biden-Harris administration, through the U.S. Department of Energy (DOE), has unveiled the first set of projects funded by the president’s Bipartisan Infrastructure Law to expand domestic manufacturing of batteries for electric vehicles (EV) and for materials and components currently imported from other countries.

The 20 companies will receive a combined $2.8 billion to build and expand commercial-scale facilities in 12 states to extract and process lithium, graphite and other battery materials, manufacture components, and demonstrate new approaches, including manufacturing components from recycled materials.

The federal investment will be matched by recipients to leverage a total of more than $9 billion to boost American production of clean energy technology, create good-paying jobs, and support Biden’s national goals for electric vehicles to make up half of all new vehicle sales by 2030 and to transition to a net-zero emissions economy by 2050.

“This is truly a remarkable time for manufacturing in America, as President Biden’s agenda and historic investments supercharge the private sector to ensure our clean energy future is American-made,” says U.S. Secretary of Energy Jennifer M. Granholm. “Producing advanced batteries and components here at home will accelerate the transition away from fossil fuels to meet the strong demand for electric vehicles, creating more good-paying jobs across the country.”

The funded projects announced include U.S. processing and recycling of critical minerals to support domestic manufacturing. Responsible and sustainable domestic sourcing of the critical materials used to make lithium-ion batteries – such as lithium, cobalt, nickel, and graphite – will strengthen the American supply chain and accelerate battery production to meet increased demand.

The funding for the selected projects will support developing enough battery-grade lithium to supply approximately 2 million EVs annually; battery-grade graphite to supply approximately 1.2 million EVs annually and battery-grade nickel to supply approximately 400,000 EVs annually. It will include installing the first large-scale, commercial lithium electrolyte salt (LiPF6) production facility in the United States as well as developing an electrode binder facility capable of supplying 45% of the anticipated domestic demand for binders for EV batteries in 2030. In addition, it will help create the first commercial scale domestic silicon oxide production facilities to supply anode materials for an estimated 600,000 EV batteries annually. With the funding, the first lithium iron phosphate cathode facility will be installed in the United States. Currently, virtually all lithium, graphite, battery-grade nickel, electrolyte salt, electrode binder, and iron phosphate cathode material are produced abroad, and China controls the supply chains for many of these key inputs.

DOE evaluated applications on technical merits and contributions to increasing American production of advanced battery components, as well as on applicants’ commitments to deliver benefits for communities and workers. The companies submitted plans for engagement with local stakeholders, Tribal nations, environmental groups and labor unions to ensure the funded projects create high-quality jobs; advance diversity, equity, inclusion and accessibility; and contribute meaningfully to the Justice40 initiative to provide 40% of the overall benefits of federal clean energy investments to disadvantaged and underrepresented communities.

Of the 20 companies selected, five will build new facilities in disadvantaged communities, and 15 in locations adjacent to disadvantaged communities. Additionally, six announced projects have established goals for hiring residents of disadvantaged communities into permanent roles, and 13 included commitments to negotiate Workforce and Community Agreements. These agreements are focused on engagement with host communities, labor unions and/or Tribal entities to agree on community benefits and implementation plans. At least two funded projects have collective bargaining agreements for both construction and ongoing production jobs, and an additional nine projects have committed to labor neutrality, with two applicants already pursuing Project Labor Agreements with unions representing their workers.

The funded projects will help employ workers from many different construction and industrial unions and 15 of the projects will collaborate with minority serving institutions, including Historically Black Colleges and Universities (HBCUs) to hire and train workers. The new and expanded facilities funded through these awards are expected to cumulatively support more than 8,000 jobs, including 5,000 permanent jobs.

The funding announced is the first phase of $7 billion in total provided by the President’s Bipartisan Infrastructure Law to strengthen the domestic battery supply chain by supporting upstream materials processing to create the precursor materials for batteries. DOE anticipates moving quickly on additional funding opportunities to continue to fill gaps in and strengthen the domestic battery supply chain.

DOE’s Office of Manufacturing and Energy Supply Chains (MESC) is responsible for strengthening and securing manufacturing and energy supply chains needed to modernize the nation’s energy infrastructure and support a clean and equitable energy transition. MESC will manage the portfolio of projects with support from DOE’s Office of Energy Efficiency and Renewable Energy’s Vehicle Technologies Office. 

The president also announced the launch of the American Battery Material Initiative, a dedicated effort to align federal investments and activities, domestic and international, to accelerate the development of the full end-to-end battery supply chain, including the critical minerals and materials we need to meet production and deployment goals.

The initiative will be led by DOE, with support from the Department of the Interior, and work closely with the Partnership on Global Infrastructure and Investment and the Department of State to align and leverage dozens of programs and efforts across the federal government to support and grow the battery supply chain, including resources through the Bipartisan Infrastructure Law and Inflation Reduction Act. The initiative will coordinate domestic and international efforts to accelerate permitting for critical minerals projects, ensuring that the United States develops the resources the country needs in an efficient and timely manner, while strengthening Tribal consultation, community engagement and environmental standards.

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