The companies that have been awarded a part of the funding will construct and expand commercial-scale facilities in 12 states for extracting and processing graphite, lithium, and other battery materials, manufacture parts, and show new approaches
The US Department of Energy (DOE) has awarded $2.8bn of funding from President Joe Biden’s Bipartisan Infrastructure Law to 20 companies for projects that could help grow the manufacturing of batteries in the country for electric vehicles (EVs) and electric grid.
The selected companies will construct and expand commercial-scale facilities in 12 states for the extraction and processing of lithium, graphite, and other battery materials, manufacture parts, and show new approaches.
Among the winning companies are Group 14 Technologies, Talon Nickel, Ascend Elements, Microvast, Applied Materials, Lilac Solutions, and others.
US Secretary of Energy Jennifer Granholm said: “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.
“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 funding will be utilised to develop battery-grade lithium, graphite, and nickel to supply about two million, 1.2 million, and 400,000 EVs per year, respectively.
The American government’s investment will be matched by the companies to make use of a total of more than $9bn to strengthen domestic production of clean energy technology. Besides, the funding will underpin President Biden’s national goals for EVs to constitute 50% all new vehicle sales by the end of the decade and to shift to a net-zero emissions economy by 2050.
Presently, almost all the electrode binder, electrolyte salt, iron phosphate cathode material, and other key components are manufactured outside of the US.
One of the funding award from the Biden administration will help in the construction of the first large-scale, commercial lithium electrolyte salt production plant in the country.
According to the DOE, the funding will also help set up an electrode binder facility and the first commercial scale domestic silicon oxide production facilities for supplying anode materials for nearly 600,000 EV batteries per year.
The DOE will also fund the installation of the first lithium iron phosphate cathode facility in the US.
The allocated funding is the first phase of $7bn to be provided to boost the battery supply chain in the country.
The Biden administration also launched the American Battery Material Initiative, which is aimed at aligning federal investments and activities to expedite the development of the entire end-to-end battery supply chain.