The U.S. Department of Energy (DOE) recently announced $3.1 billion in funding from President Biden’s Bipartisan Infrastructure Law to make more batteries and components in America, bolster domestic supply chains, create good-paying jobs, and help lower costs for families. The infrastructure investments will support the creation of new, retrofitted, and expanded commercial facilities as well as manufacturing demonstrations and battery recycling.

DOE is also announcing a separate $60 million to support second-life applications for batteries once used to power electric vehicles (EVs), as well as new processes for recycling materials back into the battery supply chain. Both funding opportunities are key components of the administration’s whole-of-government supply chain strategy to strengthen America’s energy independence to reduce reliance on competing nations and support the goal of having electric vehicles make up half of all vehicles sales in America by 2030.

“Positioning the United States front and center in meeting the growing demand for advanced batteries is how we boost our competitiveness and electrify our transportation system,” said U.S. Secretary of Energy Jennifer M. Granholm. “President Biden’s historic investment in battery production and recycling will give our domestic supply chain the jolt it needs to become more secure and less reliant on other nations—strengthening our clean energy economy, creating good paying jobs, and decarbonizing the transportation sector.”

With the global lithium-ion battery market expected to grow rapidly over the next decade, DOE is working with industry to prepare the U.S. for increased market demand. As of the end of March 2022, more than 2.5 million plug-in electric vehicles have been sold in America, with more than 800,000 of those having been sold since President Biden took office. Battery costs have fallen more than 90% since 2008, and energy density and performance have increased rapidly, paving the way for an accelerated transition to zero-emission vehicles. Responsible and sustainable domestic sourcing of the critical materials used to make lithium-ion batteries—such as lithium, cobalt, nickel, and graphite—is expected to help avoid or mitigate supply chain disruptions and accelerate battery production in America to meet this demand and support the adoption of electric vehicles.

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