US Moves to Secure Battery Supply Chain

One thing that the COVID pandemic has shown us is that the supply chains that we have built around the globe are not as strong and secure as we would like. The difficulty in procuring the correct materials and components from partners across the globe has had a real negative affect in some key industries, for example automakers have had to shut down operations in some plants over the last two years because of a shortage of semiconductors. Seeing this trend, countries and companies are determined to place a lot more emphasis in bringing all aspects of production closer to home whenever possible to give themselves more control over their production. As batteries become ever more important to our economies and industries around the world, many countries are working towards ensuring that they have access to the materials and technologies that will secure their supply.

The latest of these countries is the US, where the Department of Energy (DOE) have just announced $3.1 billion in funding to make more batteries and components in America, bolstering domestic supply chains, and creating hi-tech jobs. The new funding is part of President Biden’s Bipartisan Infrastructure Law and it will be used to support the creation of new, retrofitted, and expanded commercial facilities as well as manufacturing demonstrations and battery recycling. A separate $60 million pot will support applications that find uses for batteries that have previously been used to power EVs, as well as new processes for recycling materials back into the battery supply chain.

The global lithium-ion battery market is expected to grow rapidly over the next decade, and the DOE is working with industry to prepare the US for that increased market demand. Responsible and sustainable domestic sourcing of the critical materials used to make lithium-ion batteries—such as lithium, cobalt, nickel, and graphite—will help avoid or mitigate supply chain disruptions and accelerate battery production in America to meet the growing demand and support the adoption of electric vehicles.

The “Battery Materials Processing and Battery Manufacturing” and “Electric Drive Vehicle Battery Recycling and Second Life Applications” funding opportunities are aligned with the National Blueprint for Lithium Batteries, authored by the Federal Consortium for Advanced Batteries, and led by DOE and the Departments of Defense, Commerce, and State. In alignment with President Biden’s Justice40 initiative, establishing a goal that 40% of the benefits of Federal investments in climate and clean energy flow to disadvantaged communities, applicants for new funding opportunities will be prompted to consider how project benefits can flow to relevant disadvantaged communities.

The DOE has issued a 100-day review of the large capacity battery supply chain which recommended establishing domestic production and processing capabilities for critical materials to support a fully domestic end-to-end battery supply chain, as well as investments in battery recycling and the circular economy to increase domestic supply and reduce the future need for new extraction and raw materials.

The Bipartisan Infrastructure Law directs more than $7 billion to strengthen the U.S. battery supply chain, which includes producing and recycling critical minerals without new extraction or mining and sourcing materials for domestic manufacturing. The Bipartisan Infrastructure Law also includes $7.5 billion for electric vehicle chargers, $5 billion for electric transit buses, and $5 billion for clean and electric school buses.

https://www.energy.gov/