President Joe Biden announced $2.8 billion in grants for 20 companies to build batteries for electric vehicles in the US, as per CNBC.
Biden Administration to grant $2.8 billion for 20 Battery companies in 12 states
The grants are issued through the Department of Energy with Bipartisan Infrastructure Law funds to companies in 12 states. It will go to the creation of battery-grade materials such as graphite, lithium, and nickel.
The announcement follows as the Biden administration aims to boost EV production and sales as an essential part of President Biden’s strategy in slowing climate change and building up US manufacturing.
The United States increased manufacturing capacity has been the administration’s priority. As the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act granted more than $135 billion to EV manufacturing.
Furthermore, the president directed the industry for electric vehicles to comprise half of the vehicles produced in the US by 2030.
“The Infrastructure Law also invests in people and companies that are going to build our future like electric vehicles and the advanced batteries that are going to power those vehicles,” said Biden.
USA to compete China for Battery Manufacturing
“This is critically important because the future of vehicles is electric, but the battery is a key part of that electric vehicle, and right now, 75% of that battery manufacturing is done in China.”
Biden added, “Competing with China is a central incentive for the push. China controls nearly half of global production for some of the materials needed to produce these batteries.”
“Our national labs, our research universities, our automakers led the development of this technology here in America, but by undercutting US manufacturers with their unfair subsidies and trade practices, China seized a significant part of the market.”
Biden has also announced the establishment of a new American Battery Manufacturing Initiative to allow a complete government approach to making batteries for various uses.
Notably, the president also promised to boost the production of critical minerals, the sweeping climate, healthcare law, and several provisions to raise EVs, including tax credits of up to $7,500.
The move will further accelerate the mobility transition, confidently meet strong demand, and help boost American competitiveness.
