US readies $2.8bn EV battery development to impede China dominance
Following US president Biden’s announcement last week, the United States government is preparing $2.8 billion in grants for projects to expand U.S. manufacturing of batteries for electric vehicles (EV) and domestic mineral production, an industry that is highly dominated (approx. 75% market share worldwide) by Chinese companies.
The grants will enable manufacturing and processing companies in at least 12 states to extract and process more lithium, graphite, nickel and other battery materials.
“Producing advanced batteries and components here at home will accelerate the transition away from fossil fuels to meet the strong demand for electric vehicles, creating more good-paying jobs across the country,” Energy Secretary Jennifer Granholm said in a statement.
The projects will support developing enough lithium to supply some two million EVs per year, enough graphite for approximately 1.2 million EVs per year and enough nickel to supply some 400,000 annually, according to the Energy Department. In 2021, more than 26mn new vehicles were registered in the United States.
The grant project is part of the administration’s broader push to transition the U.S. away from gas-powered cars to EVs. However, is this investment enough? Let us know in the comments below.