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U.S. Planning $3 Billion Investment On EV Battery Manufacturing

The Biden administration would spend more than $3 billion on infrastructure to support the production of electric vehicle (EV) batteries.

May 09, 2022. By News Bureau

As per the reports shared by Reuters, President Joe Biden signed a $1 trillion infrastructure package last year, and the monies will be allocated by the Department of Energy. Mineral processing for use in large-capacity batteries and battery recycling would be among the projects, according to the agency.

By 2030, Biden wants half of all automobiles sold in the United Areas to be electric, a target he says will promote unionized manufacturing employment in critical election battleground states, fend off Chinese competition in a fast-growing market, and reduce climate-changing carbon emissions.

"As we face this Putin price hike on oil and gas, it's also important to note that electric vehicles will be cheaper over the long-haul for American families," Mitch Landrieu, the White House infrastructure coordinator, told reporters in a briefing, referring to Russian President Vladimir Putin.

The announcement was well-received by Ford Motor Company and various other US-based EV manufacturers.

"This investment will strengthen our domestic battery supply chain, create jobs, and help U.S. manufacturers compete on the global stage," Steven Croley, Ford's general counsel, said in a statement. "We have a moment of opportunity to own this technology here in the U.S., and investments like the one announced today will help us get there."

The most recent financing will aid in the establishment and retrofitting of battery plants. The infrastructure plan also included billions more for the government to spend on electric buses and charging stations. Tesla Inc. Chief Executive Elon Musk, General Motors CEO Mary Barra, and Ford CEO Jim Farley have all collaborated with the government.

However, the funds will not be used to build new domestic mines to supply the lithium, nickel, cobalt, and other high-demand minerals required to manufacture such batteries. Some of these projects encounter local opposition and are subject to environmental and legal reviews by the Biden administration.

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