U.S. Government Awards $2.8 Billion in Funding for EV Battery and Electric Grid Manufacturing



“This is truly a remarkable time for manufacturing in America,” U.S. Secretary of Energy Jennifer M. Granholm said yesterday as the Biden-Harris Administration announced $2.8 billion in funding as part of the federal government’s Bipartisan Infrastructure Law announced last year. 

In total, 20 companies across 12 states will receive federal funding to “build and expand commercial-scale facilities” for the extraction and processing of lithium, graphite, and other battery metals. 

The funding will be matched by recipients, representing a total of over $9 billion that will support President Biden’s plan to transition to a net-zero emissions economy by 2050 with electric vehicles making up half of all new vehicle sales by 2030. 

“Producing advanced batteries and components here at home will accelerate the transition away from fossil fuels to meet the strong demand for electric vehicles, creating more good-paying jobs across the country,” said Secretary Granholm.

With the United States largely dependent on foreign sources for many of the critical minerals needed for EV batteries, the Biden-Harris Administration is taking steps to secure a sustainable, U.S.-based battery supply chain by investing in domestic manufacturing. 

The government funding will support the development of enough battery-grade lithium to supply approximately 2 million electric vehicles per year, enough battery-grade graphite to supply an estimated 1.2 million EVs per year, and enough battery-grade nickel to supply approximately 400,000 EVs per year.

It will also support the creation of the first commercial scale silicon oxide production facilities in the U.S. that would supply anode materials for approximately 600,000 EV batteries annually and the first domestic lithium iron phosphate cathode facility. 

As part of the selection process, prospective companies also submitted plans for how they would engage local communities. Five of the selected 20 companies will construct new production facilities in disadvantaged communities and 15 will do so adjacent to such communities. 

This is only the beginning of the President’s plan to strengthen the U.S. battery supply chain by supporting critical minerals necessary for battery materials processing. The $2.8 billion represents the first phase of an historic total $7 billion investment as part of the Bipartisan Infrastructure Law that Secretary Granholm believes will “supercharge the private sector to ensure our clean energy future is American-made.”

About the Kinvestor Network

The Kinvestor Network is an exclusive network of investors that want access to enhanced research and reporting. The Kinvestor Network provides access to exclusive articles, reports, models, and various other tools that investors may find useful.

Visit the Kinvestor Network for more free content, including in-depth research reports, industry documentaries, CEO interviews, and more.

Please read this disclaimer in its entirety before reviewing any opinions, views or information expressed by Kin Communications Inc. (“Kin”).