V 3.1 billion for EV battery supply chain, $ 45 million for development

The United States Department of Energy (DOE) this week announced new funding from President Biden’s Bilateral Infrastructure Act for the production and development of domestic EV batteries.

The DOE on Monday announced 3.16 billion for the domestic battery supply chain. More than the $ 7 billion earmarked for battery production under the Infrastructure Act, according to a DOE press release, will fund new, restored and expanded production facilities, production demonstrations and battery recycling.

Separately, the DOE has earmarked 60 million for the so-called “second-life” use of the battery after retiring from EV use.

Mercedes-Benz battery factory

Mercedes-Benz battery factory

On Tuesday, the DOE followed those announcements with an additional $ 45 million in funding for battery development. Called the electric vehicle for the American Low-Carbon Living (EVs4ALL) program, it will operate through the Department of Energy’s Advanced Research Projects Agency-Energy (ARPA-E).

The EVs4ALL will focus on three areas: faster charging, increased efficiency and improved elasticity, the DOE said.

The Biden administration wants to expand domestic battery production by 2030 as part of its goal of making half of all new cars sold by U.S. electric. Biden also turned to the Defense Production Act for some of the materials needed to manufacture batteries.

Mercedes-Benz Alabama Battery Factory

Mercedes-Benz Alabama Battery Factory

The Build Back Better Bill may have some other measures that could help strengthen the supply chain, but it has stalled in Congress, largely due to a lack of support from West Virginia Senator Joe Manchin.

But interviewed by experts New York Times Note that even if more production is brought to the stateside, most battery raw materials are imported from other countries. Cobalt is a raw material that increases the cost of EV batteries for some time, analysts have indicated.

In 2021, the DOE points to EV austerity in line with gasoline when battery prices hit the cell level at $ 60 / kwh. But due to higher raw material costs, it seems to be out of reach now.

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