As part of the Biden-Harris administration’s “Investing in America” agenda, the U.S. Department of Energy (DOE) announced on Friday (September 20) that it will provide $3 billion in funding to 25 selected U.S. domestic battery manufacturing projects in 14 states.
These projects aim to increase domestic production of advanced batteries and battery materials, following the U.S. electric vehicle tax credit rules, shifting battery and critical mineral production away from China to enhance America’s energy security and economic competitiveness.
Once these selected projects are fully contracted, they are expected to provide over 8,000 construction jobs and more than 4,000 operational jobs.
U.S. Secretary of Energy Jennifer M. Granholm stated, “By positioning America at the forefront of advanced battery manufacturing, we are creating high-paying jobs, strengthening our global economic leadership and domestic energy security, while supporting the transition to clean energy.”
Granholm mentioned in a statement, “Investing in America” continues to inject new vitality into communities and local economies across the United States, as the U.S. manufacturing sector is experiencing a period of revival.
The funding announced on Friday is the second round of electric vehicle battery allocations under the 2021 bipartisan infrastructure law.
The previous round allocated $1.8 billion to 14 ongoing projects. According to the Associated Press, the actual total amount of the first round’s allocations was lower than the figure officials had announced in October 2022, reflecting some projects being withdrawn or rejected by U.S. officials during sometimes lengthy negotiations.
White House economic advisor Lael Brainard mentioned, “Today’s allocation brings us closer to achieving the government’s goal of establishing an end-to-end supply chain for batteries and critical minerals in the U.S., from extraction and processing to manufacturing and recycling, which is crucial for reducing China’s dominance in this key area.”
The latest government funding, as cited by the Associated Press, brings the total investment in strengthening domestic critical minerals and battery supply chains in the U.S. to nearly $35 billion. Brainard added that since Biden took office, the government has attracted over $100 billion in private sector investment through a series of policies and measures.
The DOE stated that for Friday’s government allocations, companies will be required to match the government grant with a 50-50 ratio, with a minimum investment of $50 million.
These 25 selected U.S. domestic battery manufacturing projects are located in battleground states such as Michigan, North Carolina, as well as Ohio, Texas, South Carolina, and Louisiana.
U.S. company Albemarle, which benefited from the previous round of allocations, will receive an additional $67 million to produce commercial cathode materials for next-generation lithium-ion batteries in North Carolina; while Honeywell will receive $126.6 million to construct a commercial facility in Louisiana to produce a key electrolyte salt needed for lithium batteries.
The SWA Lithium LLC’s plan aims to sustainably develop the “South West Arkansas” (SWA) lithium project in southwest Arkansas using Direct Lithium Extraction (DLE) and purification technologies. The company’s project will receive $225 million.
Battery recycling materials and management company Cirba Solutions and lithium-silicon battery material developer Group14 Technologies, Inc. will receive $200 million each; American Battery Technology Company will receive $150 million to build a new commercial-scale lithium-ion battery recycling facility capable of processing around 100,000 tons of battery materials from its battery manufacturer and automotive original equipment manufacturer (OEM) partners each year.
Additionally, Clarios Circular Solutions in collaboration with the world’s fourth-largest electric vehicle battery manufacturer SK On and materials producer Cosmo Chemical will receive $150 million for a project in South Carolina to recycle production wastes from the lithium-ion battery division of South Korean energy company SK Innovation’s SK ON, transforming them into battery-grade materials for reuse.
The DOE noted that currently, most of America’s production waste is exported to China for processing.