Biden, Plans to Invest $2.8 Billion on EV Batteries
On September 28, 2021, workers at the Lucid Motors facility in Casa Grande, Arizona, build electric automobiles by fusing the body structure with the battery pack and the front and rear subframes.
20 companies will receive funding totaling $2.8 billion from President Joe Biden to manufacture batteries for electric automobiles in the United States.
The subsidies are being given to businesses in 12 states by the Department of Energy using money from the Bipartisan Infrastructure Law. The money will be used to produce lithium, graphite, and nickel, three materials that are suitable for use in batteries.
A primary objective of the Biden administration has been expanding American manufacturing capability. More than $135 billion was allotted for the production of electric vehicles by the Bipartisan Infrastructure Act, the CHIPS and Science Act, and the Inflation Reduction Act combined.
By 2030, the industry aims to have 50% of all new vehicles produced in the US be electric vehicles, as per the president’s directive.
According to Biden, “The Infrastructure Law also invests in individuals and businesses that will construct our future, such electric vehicles and the cutting-edge batteries that will power those vehicles.”
This is crucial because electric vehicles are the way of the future, but a crucial component of an electric vehicle is its battery, and now 75% of batteries are manufactured in China.
The main driver behind the endeavor is the desire to compete with China. According to Biden, China is in charge of roughly half of the world’s production of some of the components used to make these batteries.
Biden asserted that China’s battery technology wasn’t more inventive than anyone else’s. In truth, this technology was developed mostly in America by our national labs, research institutes, and automakers. However, China captured a sizable portion of the market by undercutting US manufacturers through unfair trade practices and subsidies.
Since the Industrial Revolution, the United States is going through “one of the most significant economic changes,” according to Biden.
The development of a new American Battery Manufacturing Initiative, which will enable a whole government approach to producing batteries for uses ranging from electric vehicles and houses to defense objectives, was also announced by Biden in addition to the awards, according to the White House.
By producing additional batteries and important battery components domestically, the action will continue the effort to boost American competitiveness.