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February 14, 2022

US to allocate $2.91bn to boost advanced battery production

The allocation will be used to fund battery material refining and production plants, as well as cell manufacturing and recycling.

The US Government is set to allocate $2.91bn to increase the country’s production of advanced batteries and associated materials to support the growth of clean energy industries.

The Department of Energy (DOE) has issued two notices of intent to fund battery material refining and production plants, battery cell and pack manufacturing facilities, and recycling plants.

According to a DOE statement, funding from the Bipartisan Infrastructure Law is expected to be made available for these in the coming months.

In particular, this will be used to help increase domestic battery manufacturing and recycling capacity to support the growing electric vehicle and energy storage industries.

Energy Secretary Jennifer Granholm said: “As electric cars and trucks continue to grow in popularity within the US and around the world, we must seize the chance to make advanced batteries — the heart of this growing industry — right here at home.

“With funding from the Bipartisan Infrastructure Law, we’re making it possible to establish a thriving battery supply chain in the US.”

Last year, the DOE published a 100-day review of the US’ large-capacity battery supply chain, which recommended establishing domestic capabilities to support the supply chain.

US President Joe Biden’s Bipartisan Infrastructure Law has allocated around $7bn to bolster the supply chain, including procuring critical minerals without new extraction or mining activities.

The DOE will use the allocation to establish, overhaul and expand battery recycling facilities and increase the production of related materials.

The funding will also be used to support the research and development of applications using recycled batteries.

Last year, South Korean battery developer LG Energy Solution announced plans to invest more than $4.5bn by the end of 2025 to expand its battery production in the US.

The company has held discussions with General Motors to build a cell production plant in the country as a joint venture.

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