Under Bipartisan Infrastructure Law, 20 companies will receive $2.8bn funding across 12 states, to strengthen energy independence in the US, reduce costs, and create construction and manufacturing jobs


DOE awards funding to boost EV batteries manufacturing. (Credit: CHUTTERSNAP on Unsplash)

The US Department of Energy (DOE) has announced the investment in an initial set of clean energy projects, funded through the President’s Bipartisan Infrastructure Law.

Under the Bipartisan Infrastructure Law, 20 companies will collectively receive a sum of $2.8bn to construct and expand commercial-scale manufacturing facilities across 12 states.

The projects will enhance the local manufacturing of batteries for electric vehicles (EVs) and the electrical grid, along with materials that are currently imported from other countries.

According to DOE, the majority of lithium, graphite, battery-grade nickel, electrolyte salt, electrode binder, and iron phosphate cathode material are produced abroad, and China controls the supply chains for the majority of these important inputs.

The funding will help the companies extract and process lithium, graphite, and other battery materials, advance new approaches and manufacture components from recycled materials.

It will also boost local production of clean energy technology, create new jobs, and support the goals for electric vehicles by 2030 and a net-zero emissions economy by 2050.

US Secretary of Energy Jennifer M 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.”

According to the DOE, the funding forms the first phase of the $7bn Bipartisan Infrastructure Law and aims to strengthen the domestic manufacture of EV batteries.

It will support the responsible and sustainable domestic sourcing of the critical materials used in the manufacture of EV batteries, including lithium, cobalt, nickel, and graphite.

Also, the funding will strengthen local battery production to meet increased demand, addressing the nation’s energy independence, and national security.

The investment will enable the installation of the first large-scale, commercial lithium electrolyte salt (LiPF6) production facility in the US, along with an electrode binder facility.

Also, it will support the construction of the first commercial-scale domestic silicon oxide production facilities, and the first lithium iron phosphate cathode facility in the US.

Furthermore, The President also launched the American Battery Material Initiative, which aligns Federal investments, and domestic and international activities.