US spends more than $ 3 billion on EV battery manufacturing: White House

The Washington-Biden administration will allocate more than $ 3 billion in infrastructure to fund the production of electric vehicle (EV) batteries, US officials said Monday.

Funds will be allocated by the Ministry of Energy from the $ 1 trillion infrastructure bill signed by President Joe Biden last year. Some of the initiatives include the processing of minerals for use in high-capacity batteries and the recycling of those batteries, officials said in a statement.

Biden hopes that half of the vehicles sold in the United States will be electric vehicles by 2030. It aims to promote union employment in manufacturing in major election battlefield states and prevent China from competing in fast-growing markets.

The administration has also positioned measures as a step towards ensuring energy independence and reducing long-term inflationary pressures exacerbated by Russia’s February 24 invasion of Ukraine.

“It’s also important to note that electric cars will be cheaper over long distances for American families as we face this Putin oil and gas price increase,” said White House infrastructure coordinator Mitch Landrew. I told reporters at the briefing. To President Vladimir Putin of Russia.

Ford Motor Company welcomed this announcement.

“This investment will strengthen the domestic battery supply chain, create jobs and help US manufacturers compete on the global stage,” Ford’s legal adviser Stephen Crawley said in a statement. .. “We have the opportunity to own this technology here in the United States, and investments like those announced today will help us get there.”

The latest funds will help set up and remodel battery factories. The Infrastructure Act has also allocated billions of dollars for the government to buy electric buses and install EV chargers. The administration has worked with manufacturers such as Tesla CEO Elon Musk, General Motors CEO Mary Barra, and Ford CEO Jim Farley.

However, the funds are not directed to the development of new domestic mines to produce lithium, nickel, cobalt, and other high-demand minerals needed to make those batteries. Some of those projects face local opposition and are bound by the Biden administration’s environmental and legal reviews.

In March, Biden enacted the Cold War Defense Production Act to support the production and processing of these minerals. Last week he requested funding to support the initiative as part of a $ 33 billion package of Ukraine-related initiatives.

By Trevor Hunnicutt