WASHINGTON (AP) — The Biden administration is providing more than $3 billion to U.S. companies to boost domestic production of advanced batteries and other materials used in electric vehicles, part of an ongoing effort to reduce China’s global dominance in battery production for electric cars and other electronics.
The grants will fund a total of 25 projects in 14 states, including battleground states like Michigan and North Carolina, as well as Ohio, Texas, South Carolina and Louisiana.
The grants announced Friday mark the second round of funding for electric vehicle batteries under a bipartisan infrastructure bill passed in 2021. In the previous round, $1.8 billion was awarded to 14 ongoing projects. The totals are lower than the amounts announced by officials in October 2022 and reflect several projects that U.S. officials sometimes canceled or abandoned during lengthy negotiations.
The money is part of a larger push by President Joe Biden and Vice President Kamala Harris to increase production and sales of electric vehicles, a key part of their strategy to slow climate change and build U.S. manufacturing. Award-winning companies process lithium, graphite or other battery materials or manufacture components used in electric car batteries.
“Today’s awards move us closer to the administration’s goal of building an end-to-end supply chain for batteries and critical minerals here in America, from mining to refining to manufacturing and recycling, which is vital to reducing China’s dominance in this critical sector,” White House Economic Adviser Lael Brainard said.
The Biden-Harris administration is “committed to making batteries in the United States that are vital to powering our grid, our homes and businesses, and America’s iconic automotive industry,” Brainard told reporters Thursday at the White House.
The awards announced Friday will bring nearly $35 billion in U.S. investment to support domestic critical minerals and battery supply chains, Brainard said, citing projects ranging from large lithium mines in Nevada and North Carolina to battery plants in Michigan and Ohio and rare earths and magnets in California and Texas.
“We’re using every tool at our disposal, from grants and loans to tax credits,” he said, adding that the administration’s approach has attracted more than $100 billion in private sector investment since Biden took office.
In recent years, China has cornered processing and refining markets for key minerals such as lithium, rare earths and gallium, and has also dominated battery production, leaving the United States and its allies and partners “vulnerable,” Brainard said.
The United States has responded by taking “tough, targeted measures against China’s unfair practices.” Last week, authorities decided to impose higher tariffs on Chinese imports of critical minerals such as graphite used in electric cars and grid batteries. The administration has also acted under the 2022 Climate Change Act to encourage domestic procurement of electric vehicles sold in the United States and imposed restrictions on China and other enemies designated as foreign concerns by the United States.
“We are committed to making batteries in the United States,” Energy Secretary Jennifer Granholm said.
If finalized, the awards announced Friday will support 25 projects with 8,000 construction jobs and more than 4,000 permanent jobs, officials said. The Energy Department said companies must match the grants on a 50-50 basis with a minimum investment of $50 million.
While federal funding may not be favorable for some projects, cash generated by infrastructure and climate legislation has dramatically changed the U.S. battery manufacturing sector in recent years, said Matthew McDowell, an assistant professor of engineering at the Georgia Institute. about technology.
McDowell said he is excited about the next generation of batteries for clean energy storage, including solid-state batteries that may hold more energy than lithium-ion.
