The administration of the US President has announced that a $3.1 billion plan will be formulated to increase the manufacturing of domestic electric vehicle (EV) batteries, speeding up the country’s transition from gas-powered automobiles to EVs. Reportedly, the US emits the most greenhouse gases per capita in the world. The US’s transportation industry accounts for over one-third of the country’s annual emissions. As a result, the administration believes that electrification of the transportation sector is critical for climate change mitigation.
According to the department of energy, the new plan’s funding will be utilised as ‘grants’ to build and expand battery and battery component manufacturing. Battery recycling facilities will be eligible for grants as well. The funds will come from the President’s bipartisan infrastructure law, which was passed in 2021 and included a $1.2 trillion fund. Over $7 billion will be set aside under the law to enhance the US’s battery supply chain for EV production.
As per the statement, by the end of the decade, demand for EVs and stationary storage alone is expected to increase the lithium battery market five to tenfold.