DOE to invest $3 billion in U.S. battery production

The U.S. Department of Energy (DOE) has announced a $3 billion investment to support EV and grid battery manufacturing as part of the Biden Administration’s Investing in America agenda.

The details: The $3 billion investment will go towards 25 projects across 14 states administered by the DOE’s Office of Manufacturing and Energy Supply Chains (MESC), with a focus on three major initiatives as part of Investing in America.    

• Produce advanced EV batteries and battery materials domestically.

• Support over 8,000 U.S. construction jobs in the U.S. 

• Create over 4,000 operating jobs in the battery sector.  

Nearly 90% of the 25 selected projects are located in or adjacent to disadvantaged communities. The selected manufacturing projects cover both lithium and non-lithium technologies. 

Digging deeper: Seen as a key component of efforts to enhance the U.S.’s global positioning in the battery sector, the 25 selected projects will retrofit, expand, and build new domestic facilities for battery-grade processed minerals, battery components, battery manufacturing, and recycling.

• Investing in America is expected to generate $16 billion in total investment for battery manufacturing and recycling through the Battery Materials Processing and Battery Manufacturing and Recycling Program. 

• The new $3 billion DOE investment is also seen as a pivotal to boosting investments made by the private sector into the U.S. EV supply chain under the Biden administration, which has amounted to $120 billion in investments to date.

Why it matters: Given the concerns with China’s positioning as the world’s largest EV battery exporter, initiatives like the $3 billion DOE investment could prove pivotal in helping to better position the U.S. in the burgeoning business sector, which is expected to reach $765.6 billion by 2029.

Big picture: China is expected to account for nearly 70% of global batteries by 2030. China’s dominance in battery production is heavily attributed to its robust supply chain and manufacturing of key materials, which initiatives such as the $3 billion DOE investment seek to address in enhancing battery manufacturing in the U.S.

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