Workforce and Community Engagement
DOE evaluated applications on technical merits and contributions to increasing American production of advanced battery components, as well as on applicants’ commitments to deliver benefits for communities and workers. The companies submitted plans for engagement with local stakeholders, Tribal nations, environmental groups, and labor unions to ensure the funded projects create high-quality jobs; advance diversity, equity, inclusion, and accessibility; and contribute meaningfully to the Justice40 initiative to provide 40% of the overall benefits of federal clean energy investments to disadvantaged and underrepresented communities.
Of the 20 companies selected, five will build new facilities in disadvantaged communities, and 15 in locations adjacent to disadvantaged communities. Additionally, six announced projects have established goals for hiring residents of disadvantaged communities into permanent roles, and 13 included commitments to negotiate Workforce and Community Agreements. These agreements are focused on engagement with host communities, labor unions, and/or Tribal entities, to agree on community benefits and implementation plans. At least two funded projects have collective bargaining agreements for both construction and ongoing production jobs, and an additional nine projects have committed to labor neutrality, with two applicants already pursuing Project Labor Agreements with unions representing their workers.
The funded projects will help employ workers from many different construction and industrial unions and 15 of the projects will collaborate with minority serving institutions, including Historically Black Colleges and Universities (HBCUs) to hire and train workers. The new and expanded facilities funded through these awards are expected to cumulatively support more than 8,000 jobs, including 5,000 permanent jobs.
The funding announced today is the first phase of $7 billion in total provided by the President’s Bipartisan Infrastructure Law to strengthen the domestic battery supply chain by supporting upstream materials processing to create the precursor materials for batteries. DOE anticipates moving quickly on additional funding opportunities to continue to fill gaps in and strengthen the domestic battery supply chain.
DOE’s Office of Manufacturing and Energy Supply Chains (MESC) is responsible for strengthening and securing manufacturing and energy supply chains needed to modernize the nation’s energy infrastructure and support a clean and equitable energy transition. MESC will manage the portfolio of projects with support from DOE’s Office of Energy Efficiency and Renewable Energy’s Vehicle Technologies Office.
American Battery Material Initiative
The President also announced the launch of the American Battery Material Initiative, a dedicated effort to align Federal investments and activities, domestic and international, to accelerate the development of the full end-to-end battery supply chain, including the critical minerals and materials we need to meet production and deployment goals. The Initiative will be led by DOE, with support from the Department of the Interior, and work closely with the Partnership on Global Infrastructure and Investment and the Department of State to align and leverage dozens of programs and efforts across the Federal government to support and grow the battery supply chain, including resources through the Bipartisan Infrastructure Law and Inflation Reduction Act. The Initiative will coordinate domestic and international efforts to accelerate permitting for critical minerals projects, ensuring that the United States develops the resources the country needs in an efficient and timely manner, while strengthening Tribal consultation, community engagement, and environmental standards to build smarter, faster, and fairer.
Source: U.S. Dept. of Energy, Office of Energy Efficiency & Renewable Energy
