Battery Technology, Enviromental News, Environment, Safety, Health
DOE Battery Projects – Securing Domestic Lithium Independence
Oct
DOE battery projects involving development of domestic mining, mineral processing, and battery manufacturing is receiving federal government support. The U.S. Department of Energy (DOE) plans to distribute over $3 billion to fund more than two dozen battery-related projects across 14 states. Accordingly, this investment supports U.S. strategic independence of lithium battery production and includes battery recycling to augment lithium reserves.
The goal is to boost domestic manufacturing, which aligns with the Biden administration’s climate goals. Batteries are essential for electric vehicles (EVs) and storing renewable energy from sources like solar and wind. Federal support through grants, loans, and tax incentives is driving the establishment of new battery operations across the country.
Funded by the Bipartisan Infrastructure Law
Funding for DOE battery projects comes from the 2021 Bipartisan Infrastructure Law. The DOE has selected 25 projects with final funding contingent upon negotiations with participating parties and environmental review of project specifications. DOE estimates project funding will create approximately 12,000 jobs, with an additional 8,000 jobs associated with related construction projects.
Key DOE Battery Projects and Lithium Production
Two individual projects are expected to receive significant funding, up to $225 million each. The objective is to produce lithium from mineral rich brine. Simultaneously, Standard Lithium and Equinor are collaborating on a joint project in Arkansas that is expected to produce 45,000 metric tons of battery-quality lithium carbonate over the next 20 years. This is the second round of funding from the DOE’s Office of Manufacturing and Energy Supply Chains (MESC), with the first round in 2022 distributing $1.82 billion to 14 battery-related projects.
DOE Battery Projects Aim to Reduce Dependence on China
Currently, China dominates global battery production, responsible for an estimated 85% of the world’s battery production. Notwithstanding, it also leads in processing minerals for batteries. To reduce reliance on China, the Biden administration has increased tariffs on Chinese-made lithium batteries from 7.5% to 25%. Additionally, new rules ensure that the electric vehicle (EV) tax credit only applies to vehicles with batteries made in the U.S.
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US announces $3 billion in funding for new battery projects, The Verge, Justine Calma
