Bipartisan Infrastructure Act Funding to 20 Companies in 12 States Will Strengthen America’s Energy Independence, Create Well-Paying Construction and Manufacturing Jobs, and Cut Costs
WASHINGTON DC – The Biden-Harris administration, through the U.S. Department of Energy (DOE), today announced the first round of projects funded by the President’s bipartisan Infrastructure Act to expand domestic battery manufacturing for electric vehicles (EV) and the power grid and for materials and components currently imported from other countries. The 20 companies will receive a total of $2.8 billion to build and expand commercial-scale facilities in 12 states to mine and process lithium, graphite and other battery materials, manufacture components and demonstrate new approaches, including making components from recycled materials. The federal investment will be matched by recipients to mobilize a total of more than $9 billion to boost U.S. production of clean energy technologies, create well-paying jobs, and support President Biden’s national goals for electric vehicles account for half of all new vehicle sales. by 2030 and transition to a net-zero emissions economy by 2050.
“This is truly a remarkable time for manufacturing in America, as President Biden’s agenda and historic investments drive the private sector to ensure our clean energy future is made in America,” said U.S. Secretary of Energy Jennifer M. Granholm. “Producing advanced batteries and components here at home will accelerate the transition from fossil fuels to meet the strong demand for electric vehicles, creating more well-paying jobs across the country.”
Although sales of plug-in electric vehicles have tripled since President Biden took office, the United States depends on foreign sources for many processed versions of key minerals needed to produce electric vehicle batteries. Since taking office, the Biden-Harris administration has taken swift action to ensure a reliable and sustainable battery supply chain. Today’s grants are a critical next step in this strategy. Funded projects announced today include processing and recycling in the United States of critical minerals to support domestic manufacturing. Responsible and sustainable domestic sourcing of critical materials used to make lithium-ion batteries, such as lithium, cobalt, nickel and graphite, will strengthen the U.S. supply chain, accelerate battery production to meet the increased demand and will guarantee the country’s economic competitiveness, energy independence and national security.
Funding for selected projects will support:
- Develop enough battery-grade lithium to power around 2 million electric vehicles per year
- Develop enough battery-grade graphite to power around 1.2 million electric vehicles per year
- Produce enough battery-grade nickel to power approximately 400,000 electric vehicles per year
- Installation of the first large-scale commercial lithium electrolyte salt (LiPF6) production facility in the United States
- Develop an electrode binder plant capable of meeting 45% of the projected national demand for electric vehicle battery binders in 2030
- Establish the nation’s first commercial-scale silicon oxide production facilities to supply anode materials for approximately 600,000 EV batteries per year
- Installation of the first lithium iron phosphate cathode facility in the United States
- Currently, virtually all lithium, graphite, battery-grade nickel, electrolyte salt, electrode binder, and iron phosphate cathode material are produced overseas, and China controls supply chains. supply for many of these key inputs.
FACT SHEET: Information on individual projects can be found here.
Workforce and community engagement
The DOE evaluated entries on technical merits and contributions to increasing U.S. production of advanced battery components, as well as the nominees’ commitments to provide benefits to communities and workers. Companies have submitted engagement plans with local stakeholders, tribal nations, environmental groups and labor unions to ensure funded projects create high-quality jobs; promote diversity, equity, inclusion and accessibility; and contribute significantly to the Justice40 initiative to deliver 40% of the overall benefits of federal clean energy investments to disadvantaged and underrepresented communities.
Of the 20 companies selected, five will build new facilities in disadvantaged communities and 15 in localities adjacent to disadvantaged communities. In addition, six announced projects set targets for hiring residents of disadvantaged communities in permanent positions, and 13 included commitments to negotiate labor and community agreements. These agreements focus on engagement with host communities, unions and/or tribal entities, to agree on community benefits and implementation plans. At least two funded projects have collective bargaining agreements for ongoing construction and production jobs, and nine other projects have committed to labor neutrality, with two applicants already pursuing project labor agreements with unions representing their workers.
Funded projects will help employ workers from many different construction and industrial unions and 15 of the projects will work with minority-serving institutions, including historically black colleges and universities (HBCUs) to hire and train workers . New and expanded facilities funded through these grants are expected to cumulatively support more than 8,000 jobs, including 5,000 permanent jobs.
The funding announced today is the $7 billion total first phase provided by the bipartisan Presidential Infrastructure Act to strengthen the national battery supply chain by supporting upstream materials processing to create the precursor materials for batteries. The DOE plans to act quickly on additional funding opportunities to continue filling gaps and strengthening the national battery supply chain.
Is Office of Manufacturing and Energy Supply Chains (MESC) is responsible for strengthening and securing the energy manufacturing and supply chains needed to modernize the country’s energy infrastructure and support a clean and equitable energy transition. MESC will manage the project portfolio with support from the DOE’s Office of Energy Efficiency and Renewable Energy Vehicle Technology Office.
US Battery Materials Initiative
The President also announced the launch of the American Battery Material Initiative, a dedicated effort to align federal, state, and international investments and activities to accelerate the development of the complete end-to-end battery supply chain. , including the critical minerals and materials we need to meet production and deployment goals. The initiative will be led by the DOE, with support from the Department of the Interior, and will work closely with the Global Infrastructure and Investment Partnership and the Department of State to align and leverage dozens of programs and efforts across the federal government to support and expand the battery supply chain, including resources through the bipartisan Infrastructure Act and the Inflation Reduction Act. The Initiative will coordinate domestic and international efforts to expedite permitting for critical mining projects, ensuring that the United States develops the resources the country needs in an efficient and timely manner, while strengthening consultation. tribalism, community engagement and environmental standards to build smarter, faster. , and fairer.
Courtesy of Energy.Gov
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