Biden’s $3 Billion Boost: Powering Up U.S. EV Battery Production to Challenge China’s Dominance
Staff Editor
2 min read
Biden Administration Awards $3 Billion to Boost Domestic EV Battery Production
The Biden administration has announced over $3 billion in grants to U.S. companies to enhance domestic production of advanced batteries and materials for electric vehicles (EVs). This initiative aims to reduce China’s dominance in battery production for EVs and other electronics. The funding will support 25 projects across 14 states, including key battleground states.
This allocation marks the second round of EV battery funding as part of the bipartisan infrastructure law approved in 2021. An earlier round allocated $1.8 billion for 14 ongoing projects. The total funding has been adjusted due to project withdrawals or rejections.
The grants are part of a broader effort by President Joe Biden and Vice President Kamala Harris to combat climate change and bolster U.S. manufacturing. Companies receiving awards will process lithium, graphite, or other battery materials, or manufacture EV battery components.
White House economic adviser Lael Brainard emphasized the goal of creating a complete supply chain for batteries and critical minerals in the U.S. The administration aims to reduce China’s dominance in this sector, with nearly $35 billion in total U.S. investments to strengthen domestic critical minerals and battery supply chains.
The Biden-Harris administration’s approach has leveraged over $100 billion in private sector investment since taking office. This strategy addresses China’s dominance in processing and refining key minerals, which has made the U.S. and its allies vulnerable.
In response to unfair actions by China, the U.S. has implemented higher tariffs on Chinese imports of critical minerals. The 2022 climate law further incentivizes domestic sourcing for EVs sold in the U.S. and restricts products from adversaries.
The awarded projects are expected to create 8,000 construction jobs and over 4,000 permanent jobs. Companies must match grants on a 50-50 basis, with a minimum $50 million investment.
Industry experts note that federal funding has dramatically transformed the U.S. battery manufacturing sector. There is growing excitement about next-generation technologies, including solid-state batteries, which could potentially hold more energy than current lithium-ion batteries.
