Seeking to counter China, US awards $3 billion for EV battery production in 14 states

The Biden administration is awarding over $3 billion to U.S. companies to boost domestic production of advanced batteries and other materials used for electric vehicles, part of a continuing push to reduce China’s global dominance in battery production for EVs and other electronics.

The grants will fund a total of 25 projects in 14 states, including battleground states such as Michigan and North Carolina, as well as Ohio, Texas, South Carolina and Louisiana.

The grants announced Friday mark the second round of EV battery funding under the bipartisan infrastructure law approved in 2021. An earlier round allocated $1.8 billion for 14 projects that are ongoing. The totals are down from amounts officials announced in October 2022 and reflect a number of projects that were withdrawn or rejected by U.S. officials during sometimes lengthy negotiations.

The money is part of a larger effort by President Joe Biden and Vice President Kamala Harris to boost production and sales of electric vehicles as a key element of their strategy to slow climate change and build up U.S. manufacturing. Companies receiving awards process lithium, graphite or other battery materials, or manufacture components used in EV batteries.

“Today’s awards move us closer to achieving the administration’s goal of building an end-to-end supply chain for batteries and critical minerals here in America, from mining to processing to manufacturing and recycling, which is vital to reduce China’s dominance of this critical sector,” White House economic adviser Lael Brainard said.

The Biden-Harris administration is “committed to making batteries in the United States that are going to be vital for powering our grid, our homes and businesses and America’s iconic auto industry,” Brainard told reporters Thursday during a White House call.

The awards announced Friday bring to nearly $35 billion total U.S. investments to bolster domestic critical minerals and battery supply chains, Brainard said, citing projects from major lithium mines in Nevada and North Carolina to battery factories in Michigan and Ohio to production of rare earth elements and magnets in California and Texas.

“We’re using every tool at our disposal, from grants and loans to allocated tax credits,” she said, adding that the administration’s approach has leveraged more $100 billion in private sector investment since Biden took office.

In recent years, China has cornered the market for processing and refining key minerals such as lithium, rare earth elements and gallium, and also has dominated battery production, leaving the U.S. and its allies and partners “vulnerable,” Brainard said.

The U.S. has responded by taking what she called “tough, targeted measures to enforce against unfair actions by China.” Just last week, officials finalized higher tariffs on Chinese imports of critical minerals such as graphite used in EV and grid-storage batteries. The administration also has acted under the 2022 climate law to incentivize domestic sourcing for EVs sold in the U.S. and placed restrictions on products from China and other adversaries labeled by the U.S. as foreign entities of concern.

“We’re committed to making batteries in the United States of America,” Energy Secretary Jennifer Granholm said.

If finalized, awards announced Friday will support 25 projects with 8,000 construction jobs and over 4,000 permanent jobs, officials said. Companies will be required to match grants on a 50-50 basis, with a minimum $50 million investment, the Energy Department said.

While federal funding may not be make-or-break for some projects, the infusion of cash from the infrastructure and climate laws has dramatically transformed the U.S. battery manufacturing sector in the past few years, said Matthew McDowell, associate professor of engineering at Georgia Institute of Technology.

McDowell said he is excited about the next generation of batteries for clean energy storage, including solid state batteries, which could potentially hold more energy than lithium ion.

SportsPlus

Local News

Hezbollah confirms its leader Hassan Nasrallah was killed in an Israeli airstrike

Jim Beam

Jim Beam column:Why are groceries so high?

Local News

State superintendent: La. education system moving ‘in right direction’

Local News

DeRidder man killed in single-vehicle crash

life

Volunteers at Second Harvest warehouse bag groceries for distribution

life

SW La. nightlife calendar: There’s always something to do

life

Jeff Davis Parish Fair focuses on fun, families

Local News

Rescuers race to free people trapped by Hurricane Helene after storm kills at least 35 in 4 states

life

McNeese Library to host rare book petting zoo 

Crime

9/27: Calcasieu Parish Sheriff announces arrest list

life

Slime time: Three hours of fun, food, movies planned for Nickelodeon Day of Play at Prien Lake Park

life

On the wild side: ‘Hit Me with Your Best shot’ exhibit showcases birds in their natural habitat

Local News

Cowboys start long road stretch

Local News

Teacher Alicia Chism: ‘Every student has the potential to succeed’

Local News

H.C. Drew School of Kinesiology showcases education, opportunities it offers

Local News

United Way leads disaster relief for Helene victims

Local News

Helene makes landfall as Category 4 hurricane

Local News

Landlords need renters, the parish has them

Local News

Louisiana Fortify Homes Program doubles number of grants to be awarded from 300 to 600

Crime

Sheriff: LC man fatally shoots neighbor, calls 911

Crime

Third suspect sought in fatal Rena Street shooting

Jim Gazzolo

Jim Gazzolo column: Schedule offers no rewards

McNeese Sports

Boogsie man: Silvera scary to offenses

Local News

Democrats try to censure Clay Higgins