To counter China, the United States grants $3 billion for the production of batteries for electric vehicles in 14 states

WASHINGTON — The Biden administration is providing more than $3 billion to U.S. companies to boost domestic production of advanced batteries and other materials used for electric vehicles, part of a continuing effort to reduce China’s global dominance in the production of batteries for electric vehicles and other electronic devices.

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

The grants announced Friday mark the second round of funding for electric vehicle batteries under the Bipartisan Infrastructure Act of 2021 Approved. A previous round allocated $1.8 billion to 14 ongoing projects. The totals are down from amounts announced by officials in October 2022 and reflect a number of projects that were withdrawn or rejected by U.S. officials during sometimes lengthy negotiations.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 broader effort by President Joe Biden and Vice President Kamala Harris to boost production and sales of electric vehicles as a key part of their strategy to slow climate change and grow U.S. manufacturing. The winning companies process lithium, graphite or other battery materials, or make components used in electric vehicle batteries.

“Today’s awards bring us closer to 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 to recycling, which is essential to reducing China’s dominance in this critical sector,” said White House economic adviser Lael Brainard.

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

The awards announced Friday bring total U.S. investments to strengthen domestic supply chains for critical minerals and batteries to nearly $35 billion, Brainard said, citing plans from major companies. lithium mines in Nevada and from North Carolina to battery plants in Michigan and Ohio to rare earth element and magnet production in California and Texas.

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

In recent years, China has cornered the market in processing and refining key minerals such as lithium, rare earths and gallium, and has also dominated battery production, leaving the United States and its allies and partners “vulnerable,” Brainard said.

The United States responded with what it called “tough and targeted measures to combat China’s unfair actions.” Last week, officials finalized higher tariffs on Chinese imports of key minerals such as graphite used in electric vehicles and grid storage batteries. The administration also acted under the Climate Act of 2022 to encourage domestic procurement of electric vehicles sold in the United States and imposed restrictions on products from China and other adversaries. labeled by the United States as foreign entities of concern.

“We are committed to manufacturing batteries in the United States of America,” said Energy Secretary Jennifer Granholm.

If the grants announced Friday are finalized, they will support 25 projects with 8,000 construction jobs and more than 4,000 permanent jobs, officials said. Companies will be required to match grants, with a minimum investment of $50 million, the Energy Department said.

While federal funding may not be decisive for some projects, the infusion of cash from infrastructure and climate legislation has has radically transformed the U.S. battery manufacturing industry In recent years, said Matthew McDowell, associate professor of engineering at the 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 batteries.