US Battery Production Is Getting A Massive Boost, Here’s Why

By Joseph Farago | 2 months ago

Over the past few years, supply chains for battery production have been extremely limited. Joe Biden’s administration pushed for billions of dollars for battery manufacturing, hoping to build up domestic and international supply chains. The Department of Energy has been the leading factor in this investment, pursuing Biden’s transition to cleaner energy sources.

The Department of Energy revealed this monetary plan in an announcement recently. The announcement declared that the department would give $3.1 billion to companies to produce batteries and fund the recycling of those batteries at their life cycle’s end. Hopefully, the funds will incentivize companies to focus on cleaner energy while boosting the supply chain for batteries. Alongside the $3.1 billion, $60 million worth of grants will be attributed to companies finding innovative ways to repurpose old batteries. Along with Biden’s administration, the department is attempting to make cleaner energy more available through the Bipartisan Infrastructure Law passed in 2021.

When Biden was running for office, he promised to focus on the current climate crisis and funding more sustainable energy practices. He agreed to this again under the Paris climate agreement, where the US pledged to cut greenhouse gas emissions in half by the end of the decade. The Biden administration is slowly progressing in this endeavor, hoping to diminish gas emissions by accelerating battery production. Saving the climate also means an investment in EV batteries and cleaner cars.

Biden wants to make sure EV cars comprise half of all new car sales by 2030. This can only be done through excessive battery production and a commitment to affordable electric vehicles. This would also mean tapping into other cleaner energy sources, like wind and solar power. Though electric vehicle batteries being more available on the market could help lower an EV’s cost, there’s nothing the Biden administration has overtly stated that’ll make EVs more affordable.

A study done by the Department of Energy has already concluded there aren’t enough ion batteries to provide cleaner cars by the end of the decade. This could be reverted by higher battery production but needs to be imposed immediately. Battery production is incredibly vulnerable at the moment since batteries are only produced extensively in a handful of countries. Investing more money into companies that would manufacture batteries would help America with its supply shortage but might not be enough in the long run.

The Department of Energy announcement regarding battery production is not the only Biden subsidization for cleaner energy sources. A few months ago, Biden ushered in the Defense Production Act to bolster the battery supply in America. This act funded domestic mining and mineral processing to create these necessary products. Minerals like nickel, lithium, cobalt, graphite, and manganese are integral to manufacturing batteries. Putting more money into domestic manufacturing could faster battery processing for electric vehicles and other necessary appliances. Biden’s commitment to renewable energy is only one factor in the fight against climate change. It’ll take more funding for battery production and transitioning away from fossil fuel to meet America’s goal of emitting less greenhouse gasses by 2030.