Biden Administration Awards $3 Billion To Develop Domestic Battery Production

The Biden administration on Friday said it would award $3 billion to U.S. companies to boost production of advanced batteries to meet the growing demand for electric vehicles, part of an ongoing effort to counter China's global dominance in the industry.

The federal funds will be directed at 25 projects in 14 states - including Michigan, Ohio, North Carolina, and Texas - as part of $120 billion spent on clean energy products since the Bipartisan Infrastructure Law was passed in 2021, the Department of Energy said in a press release.

The projects will "retrofit, expand, and build new domestic facilities for battery-grade processed critical minerals, battery components, battery manufacturing, and recycling," it said.

"Today's awards move us closer to achieving the administration's goal of building an end-to-end supply chain for batteries and critical minerals here in America, from mining to processing to manufacturing and recycling, which is vital to reduce China's dominance of this critical sector,'' White House economic adviser Lael Brainard, the Associated Press reported.

The White House is "committed to making batteries in the United States that are going to be vital for powering our grid, our homes and businesses and America's iconic auto industry,'' she told reporters.

The companies receiving the awards process materials essential for batteries like lithium "to ensure the U.S. has a diverse portfolio of domestic battery technologies that can strengthen our overall energy security," the Department of Energy said.