Biden Administration announces $3bn plan for U.S.-based EV battery manufacturing

Tesla's 4680 battery cell manufacturing process. (Credit: Tesla)

The Biden Administration made a massive push toward the eventual domestication of the electric vehicle supply chain in the United States on Monday. The Administration announced it will launch a $3.16 billion plan to boost U.S.-based EV battery manufacturing, a small part of a much larger push toward transitioning to electric vehicles.

Electric vehicle manufacturing has boosted globally, but the United States is working toward making more parts of the supply chain available in the U.S. As the Russian War against Ukraine launched earlier this year, material prices skyrocketed, causing many automakers to increase prices. Additionally, supply chain bottlenecks have been prevalent in the automotive industry, among others, as a whole since the COVID-19 pandemic began. Parts and materials coming from overseas are taking extended periods to make it to the United States, pushing the need for domestic parts manufacturing.

Finally, the Biden Administration announced today that it would push money toward this initiative. The funding will support grants to build and develop battery and battery component manufacturing within the United States. Funded by President Biden’s $1 trillion bipartisan infrastructure law, the grants will help bring more battery manufacturing efforts to the country, boosting manufacturing efficiency and providing more jobs in the sector.

“These made-in-America batteries are going to help reduce emissions and create opportunities across the country,” White House National Climate Advisor Gina McCarthy said earlier today in a call with reporters, CNBC said.

The Government has also committed to EVs with specific goals for the sector and internal targets to replace a considerable number of vehicles within its fleet with electric powertrains. Fifty percent of all vehicle sales should be electric by 2030, and 600,000 cars and trucks within the federal fleet will be EVs by 2035.

The United States is adopting EVs at the third-best rate globally, trailing only China and Europe. However, just 4 percent of vehicles purchased last year were electric, according to Canalys, a market research firm.

“Positioning the United States front and center in meeting the growing demand for advanced batteries is how we boost our competitiveness and electrify our transportation system,” Jennifer Granholm, U.S. Secretary of Energy, said. “President Biden’s historic investment in battery production and recycling will give our domestic supply chain the jolt it needs to become more secure and less reliant on other nations—strengthening our clean energy economy, creating good-paying jobs, and decarbonizing the transportation sector.”

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Biden Administration announces $3bn plan for U.S.-based EV battery manufacturing
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