One year ago, US President, Biden, signed the $1 trillion infrastructure bill. From the funds, $3 billion will be allocated into boosting production of lithium batteries.
In particular, the funds will go into processing of minerals for use in large-capacity batteries and recycling those batteries. The funds will be distributed as grants to companies involved in those two operations.
According to Reuters, the grants will not go toward developing new domestic mines to produce lithium and other minerals needed to make batteries due to local opposition of such operations.
“These resources are about battery supply chain, which includes producing, recycling critical minerals without new extraction or mining,” said Gina McCarthy, Biden’s national climate adviser.
As many as 30 companies will be awarded grants on a basis of 50-50 investment where the government will match the funds raised by the company with a minimum of $50 million required.
The move will help the US reduce carbon emissions, become independent on their energy requirements, create jobs and compete better with the Chinese manufacturers.
Biden administration wants to reduce its reliance on foreign sources of oil and gas plus the inflation that comes with it.
“As we face this Putin price hike on oil and gas, it’s also important to note that electric vehicles will be cheaper over the long-haul for American families,” Mitch Landrieu, the White House infrastructure coordinator.
The administration wants half of vehicles sold in the U.S. to be electric by 2030. So far, the country has around 2.5 million electric cars and nearly 800,000 of those have been sold since Biden became President.