U.S. Sets Aside Over $3 billion on EV battery manufacturing
According to US officials, the Biden administration will allocate more than $3 billion in infrastructure investment to electric vehicle (EV) battery manufacturing. The money will be provided by the US Department of Energy from a $1 trillion infrastructure plan approved by Joe Biden last year.
According to the agency, the processing of minerals for use in large-capacity batteries, as well as the recycling of those batteries, would be among the activities.
By 2030, Biden wants 50% of all vehicles sold to be electric, a goal he hopes will promote unionised manufacturing employment in critical election battleground areas, fend off Chinese competition in a fast-growing market, and cut climate-changing carbon emissions.
Mitch Landrieu, the White House infrastructure coordinator, said:
"As we face this Putin price hike on oil and gas, it's also important to note that electric vehicles will be cheaper over the long haul for American families."
The most recent financing will aid in the establishment and retrofitting of battery plants. The infrastructure plan also included billions more for the government to spend on electric buses and charging stations. Elon Musk, the CEO of Tesla Inc., Mary Barra, the CEO of General Motors, and Jim Farley, the CEO of Ford Motor Company, have all worked with the administration.
The new funding, however, will not be used to create new domestic mines to supply the lithium, nickel, cobalt, and other high-demand minerals required to manufacture such batteries. Some of these projects are being held up by local opposition and are undergoing environmental and legal reviews by the Biden administration.
Gina McCarthy, Biden's national climate adviser, said:
"These resources are about battery supply chain, which includes producing, recycling critical minerals without new extraction or mining. So that's why we're all pretty excited about this."
Biden used the Defense Production Act from the Cold War to promote the production and processing of certain minerals in March. Last week, as part of a $33 billion package of Ukraine-related activities, he asked for financing to support that programme.
Source: Reuters
