US government tips billions into battery manufacturing projects

America’s Biden administration has announced over $US3 billion in funding to support the country’s domestic production of advanced batteries and battery materials.

Billed as part of the administration’s Investing in America agenda, the Department of Energy (DoE) announced that it was investing $US3 billion, or around $A4.4 billion, for 25 projects across 14 states that it says will “boost the domestic production of advanced batteries and battery materials nationwide.”

The investment builds off a previous round of funding in which the DoE awarded a total of $1.82 billion to 14 projects.

The first round focused on building and expanding commercial-scale facilities to extract lithium, graphite, and other battery materials, and battery component manufacturing, as well as supporting the demonstration of new approaches to manufacturing components from recycled materials.

According to the DoE, many of the facilities backed by the first round of funding are already under construction, with one facility already up and running.

Both financing rounds are part of the dual Battery Materials Processing and Battery Manufacturing and Recycling programs which is expected to enable $US16 billion in total investment for battery manufacturing, processing, and recycling, and create over 6,000 operating jobs and over 13,000 construction jobs across the country.

“Since Day One of this administration, President Biden and Vice President Harris have acknowledged that taking action on climate change and rebuilding our domestic manufacturing capacity are mutually reinforcing goals,” said Ali Zaidi, the White House national climate advisor.

“Nowhere is that more true than in the supply chain for a clean energy economy—whether that’s batteries for electric vehicles, energy storage, or a range of other applications.

Today’s game-changing announcement is helping support the technologies that we need in the market today, the components that we will need in the near future, and the innovative technologies we need to advance our vision for a circular domestic battery supply chain that positions the United States to continue leading the global effort on clean energy.”  

Amongst the 39 projects to receive government funding are several production and recycling projects targeting both lithium-ion and lithium iron phosphate battery chemistries, as well as numerous projects targeting the production of battery materials including manganese, lithium carbonate, and cathode active materials.

Another of the projects to receive funding is the Realizing Advanced Production of Iron-Air Batteries for Commercial Deployment, or RAPID, project, under development by Form Energy, which has developed a 100-hour iron-air storage energy system.

Backed by $US150 million, Form Energy aims to install its first large commercial-scale 20GWh/yr iron-air battery manufacturing line, with a goal to meet full production capacity by 2027.

A full list of all 39 recipients of government funding can be found here.

“The Biden-Harris administration is using every available tool to onshore and friend-shore the supply chain for EVs and batteries, working with our allies and partners, for the benefit of our national security, our economy, and our planet,” added John Podesta, senior advisor to President Biden for international climate policy.

“Today’s battery manufacturing grants from DOE will boost America’s manufacturing base, create good-paying union jobs all over the country, and help tackle the climate crisis.”