Energy Department unveils $3B to boost advanced U.S. battery manufacturing

The Department of Energy recently unveiled a substantial $3 billion investment aimed at enhancing battery manufacturing within the United States. This funding initiative is part of the Biden-Harris Administration’s broader strategy to invigorate American manufacturing and stimulate economic growth.

This initiative will see funds allocated across 14 states for a total of 25 projects, focused on increasing the domestic production of advanced batteries. The Office of Manufacturing and Energy Supply Chains within the Energy Department will oversee these projects, which encompass retrofitting existing facilities, expanding current operations, and constructing new facilities tailored for battery-grade processed critical minerals, battery components, manufacturing processes, and recycling efforts.

U.S. Secretary of Energy Jennifer M. Granholm emphasized that the country is experiencing a resurgence in manufacturing, driven by the Investing in America agenda. She noted that this revitalization not only invigorates local economies but also plays a pivotal role in the ongoing clean energy transition.

Once the projects are fully contracted, they are projected to create over 8,000 construction jobs and more than 4,000 operational jobs. Many of these positions are expected to be well-paying union jobs, according to the Energy Department. The initiatives are a collaborative effort involving numerous unions, including North America’s Building Trades Unions, Boilermakers, the International Association of Sheet Metal, Air, Rail, and Transportation Workers, Carpenters, Operating Engineers, United Food and Commercial Workers International Union, International Brotherhood of Electrical Workers, and the United Association of Journeymen and Apprentices.

Granholm reaffirmed the importance of this funding, stating, “By positioning the U.S. at the forefront of advanced battery manufacturing, we are creating high-paying jobs and strengthening our global economic leadership and domestic energy security, all while supporting the clean energy transition.”

Since the start of the Biden-Harris administration, the private sector has invested a remarkable $120 billion into the electric vehicle (EV) supply chain, underscoring the administration’s proactive approach to enhancing domestic manufacturing capabilities.

The newly announced projects are deemed crucial to the President’s clean energy industrial strategy, aimed at fortifying a domestic supply chain that augments America’s energy security and economic competitiveness. What’s particularly striking is that nearly 90% of the projects funded by this $3 billion investment are situated in or near disadvantaged communities, targeting areas often overlooked in similar initiatives.

The Energy Department highlighted the significance of these projects, indicating they represent vital components of the domestic battery supply chain. The scope of these projects includes the production of electrolyte salts, solid-state electrolytes, separators, and various cathode and anode materials. They are designed to support both current and next-generation lithium-ion battery chemistries, furthering advancements in this key sector.

Moreover, these projects will facilitate the establishment and expansion of facilities capable of extracting and recycling critical minerals such as lithium, graphite, and manganese, which are essential for battery production. This marks a significant step toward creating a more self-reliant and sustainable domestic battery supply chain.

In summary, the Department of Energy’s $3 billion investment signals a strong commitment to bolstering battery manufacturing in the U.S. It aims not only to create jobs and stimulate the economy but also to support the transition to cleaner energy sources. By focusing on domestic supply chains and disadvantaged communities, this initiative sets the stage for a more robust and equitable energy future.