Energy
Wednesday, November 15th, 2023 6:54 pm EDT
Key Points
DOE’s Financial Push for Battery Supply Chain:
- The U.S. Department of Energy (DOE) is allocating up to $3.5 billion to support companies involved in battery production and the extraction of critical minerals essential for batteries. This initiative aims to fortify the U.S. battery supply chain, considering batteries’ crucial role in addressing climate change by powering electric vehicles and storing clean energy.
Lithium Ion Dominance and Growing Demand:
- Lithium-ion batteries currently dominate electric vehicles and clean energy storage.
Despite ongoing efforts to develop alternative battery technologies, the DOE anticipates a tenfold increase in demand for lithium batteries by 2030, prompting the need to strengthen the supply chain.
Bipartisan Infrastructure Law and Funding Mechanism:
- The Bipartisan Infrastructure Law has designated $6 billion for battery material processing and manufacturing.
Funding is structured to support projects related to critical minerals used in lithium batteries, including graphite and nickel mining. The funding mechanism involves companies determining the cost of building facilities, committing to cover half the cost, with government grants covering the remaining half for selected projects.
The U.S. Department of Energy (DOE) is directing up to $3.5 billion to support companies involved in battery production and the extraction of critical minerals essential for battery manufacturing. Batteries are considered crucial for addressing climate change by powering electric vehicles and storing clean energy. The dominant lithium-ion battery faces increasing demand, projected to rise up to ten times by 2030. The Biden-Harris administration aims to achieve zero climate change-causing pollution by 2050 and make half of all new car sales electric by 2030.
Concerns about potential shortages and industry concentration in Asia prompt this initiative. The DOE aims to diversify battery production locations and material sourcing to avoid global shortages similar to those experienced in the semiconductor industry during the pandemic. The Bipartisan Infrastructure Law allocates a total of $6 billion for battery material processing and manufacturing. The second funding round supports companies working on alternative chemistries like flow and sodium batteries, along with those involved in critical mineral mining.
The funding model involves companies proposing projects, determining construction costs, committing to cover half of the expenses, and receiving government grants to cover the other half if selected. This initiative aims to boost the U.S. battery manufacturing sector and avoid potential future global battery shortages. Companies can apply for funding until mid-March, with the funding expected to significantly impact the U.S. battery industry.
For the full original article, please click here: https://toronto.citynews.ca/2023/11/15/energy-department-tries-to-boost-us-battery-industry-with-another-3-5-billion-in-funding/
