The Biden-Harris Administration has announced over $3 billion in funding for 25 projects across 14 states to enhance domestic production of advanced batteries and battery materials. This initiative, part of the Investing in America agenda, aims to create over 12,000 jobs and bolster national security by supporting the electrification of the transportation sector and strengthening the U.S. grid.
Administered by the Department of Energy’s Office of Manufacturing and Energy Supply Chains (MESC), these projects will retrofit, expand, and build new facilities for processing critical minerals, manufacturing battery components, and recycling. The private sector has already invested $120 billion in the electric vehicle supply chain under this administration.
“We’re in the midst of a manufacturing revival in the United States as the Biden-Harris Administration’s Investing in America agenda continues to breathe new life into communities and local economies across the country,” said U.S. Secretary of Energy Jennifer M. Granholm. “By positioning the U.S. at the forefront of advanced battery manufacturing, we are creating high-paying jobs and strengthening our global economic leadership and domestic energy security, all while supporting the clean energy transition.”
John Podesta, Senior Advisor to President Biden for International Climate Policy, emphasized that these grants would boost America's manufacturing base and help tackle climate change: “The Biden-Harris administration is using every available tool to onshore and friend-shore the supply chain for EVs and batteries... 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.”
White House National Climate Advisor Ali Zaidi highlighted that rebuilding domestic manufacturing capacity aligns with climate action goals: “Since Day One of this Administration... Nowhere is that more true than in the supply chain for a clean energy economy—whether that’s batteries for electric vehicles... Today’s game-changing announcement is helping support technologies that we need...”
The DOE's efforts through MESC aim to develop a secure battery manufacturing supply chain by generating $16 billion in total investment through grants and loans under its Battery Materials Processing and Battery Manufacturing and Recycling Program. These investments will cover various segments across the supply chain from raw material extraction to component manufacturing.
Of the selected projects, more than half have committed to or signed Project Labor Agreements, with several union partners involved including NABTU (North America’s Building Trades Unions), Boilermakers, SMART International Association of Sheet Metal Workers (SMART), Carpenters, Operating Engineers, UFCW (United Food and Commercial Workers International Union), IBEW (International Brotherhood of Electrical Workers) and UA (United Association).
Nearly 90% of selectees are located near disadvantaged communities as part of President Biden's Justice40 Initiative which aims to ensure 40% of certain federal investments benefit marginalized communities.
Selection for award negotiations does not guarantee funding; DOE will undergo a negotiation process with applicants before issuing any awards or funds.
