The U.S. Department of Energy announced on its official website that it would receive $3.16 billion from the bipartisan infrastructure bill for the development of the domestic electric vehicle battery manufacturing industry in the United States.
The Department of energy said $3.1 billion would be used to invest in the construction, transformation and expansion of facilities related to electric vehicle batteries, with the aim of producing more batteries and components locally, strengthening the domestic supply chain, creating high paying jobs and helping reduce household costs. The Department of energy will also receive an additional $60 million for the recycling and reuse of used batteries.
The US Department of energy expects that the global lithium-ion battery market will grow rapidly in the next decade. The Department will conduct responsible and sustainable domestic procurement of key materials of lithium-ion batteries (such as lithium, cobalt, nickel and graphite), “while accelerating battery production, avoid or reduce supply chain disruption.”
Energy minister Jennifer Granholm said in a statement that these new investments “will awaken our domestic supply chain, make it safer and reduce dependence on other countries”, and will also “strengthen our clean energy economy, create high paying jobs and decarbonize the transport sector”.
Opportunities and risks of battery supply chain
Last August, US President Joe Biden announced to promote the leadership of the United States in clean energy vehicles and set a new goal – to increase the market share of electric vehicles to 50% by 2030.
However, since the outbreak of the new crown pandemic, electric vehicle manufacturers have encountered supply chain bottlenecks including many accessories such as chips and batteries. After the outbreak of the Russian Ukrainian war, the tension in the supply and demand market has reached an unprecedented level.
In April this year, Biden authorized the use of the national defense production act to ensure the key materials needed to promote the transformation of clean energy and support the mining and processing of lithium, nickel, cobalt, graphite, manganese and other materials needed to produce high-capacity batteries.
Last month, RJ scaringe, CEO of American electric vehicle manufacturer rivian, warned that for an industry trying to increase the sales of electric vehicles from millions to tens of millions within a decade, whether it can manufacture enough batteries will become the biggest obstacle. “There will be a shortage in all links from the mining of raw materials to processing to the manufacture of batteries themselves.”
Scaringe told the media that “lack of core” is only a relatively small imbalance between supply and demand, and the situation of batteries is expected to be an order of magnitude worse. “Semiconductor shortage is just a small appetizer for the battery shortage we feel in the next 20 years.”
The Department of energy said $3.1 billion would be used to invest in the construction, transformation and expansion of facilities related to electric vehicle batteries, with the aim of producing more batteries and components locally, strengthening the domestic supply chain, creating high paying jobs and helping reduce household costs. The Department of energy will also receive an additional $60 million for the recycling and reuse of used batteries.
The US Department of energy expects that the global lithium-ion battery market will grow rapidly in the next decade. The Department will conduct responsible and sustainable domestic procurement of key materials of lithium-ion batteries (such as lithium, cobalt, nickel and graphite), “while accelerating battery production, avoid or reduce supply chain disruption.”
Energy minister Jennifer Granholm said in a statement that these new investments “will awaken our domestic supply chain, make it safer and reduce dependence on other countries”, and will also “strengthen our clean energy economy, create high paying jobs and decarbonize the transport sector”.
Opportunities and risks of battery supply chain
Last August, US President Joe Biden announced to promote the leadership of the United States in clean energy vehicles and set a new goal – to increase the market share of electric vehicles to 50% by 2030.
However, since the outbreak of the new crown pandemic, electric vehicle manufacturers have encountered supply chain bottlenecks including many accessories such as chips and batteries. After the outbreak of the Russian Ukrainian war, the tension in the supply and demand market has reached an unprecedented level.
In April this year, Biden authorized the use of the national defense production act to ensure the key materials needed to promote the transformation of clean energy and support the mining and processing of lithium, nickel, cobalt, graphite, manganese and other materials needed to produce high-capacity batteries.
Last month, RJ scaringe, CEO of American electric vehicle manufacturer rivian, warned that for an industry trying to increase the sales of electric vehicles from millions to tens of millions within a decade, whether it can manufacture enough batteries will become the biggest obstacle. “There will be a shortage in all links from the mining of raw materials to processing to the manufacture of batteries themselves.”
Scaringe told the media that “lack of core” is only a relatively small imbalance between supply and demand, and the situation of batteries is expected to be an order of magnitude worse. “Semiconductor shortage is just a small appetizer for the battery shortage we feel in the next 20 years.”
