The U.S. government says it will invest over $3 billion USD to boost domestic electric vehicle battery output and for energy storage.
The announcement was made on Monday to reporters in a briefing, according to Bloomberg. Dave Howell, principal deputy director in the Energy Department’s Office of Manufacturing and Energy Supply Chains, says roughly $3.16 billion in grants will support the production of key battery metals such as lithium, cobalt and nickel.
The new investment will allow the U.S. to reduce its reliance on foreign competitors, including China, the world’s leading maker of lithium-ion battery cells, plus also boost President Joe Biden’s goal of having EVs make up 50% of new U.S. car sales by 2030.
“This announcement will help boost domestic battery manufacturing, make our country more secure and spread the creation of good-paying jobs,” said Mitch Landrieu, the White House’s senior advisor and infrastructure coordinator, in a statement.
The White House said the new investment will also fight climate change, plus combat rising oil and gas prices, as a result of Russia’s war in Ukraine.
Funding will come from the $550 infrastructure bill inked into law in 2021, which noted $7 billion would be allocated for batteries and the creation of domestic supply chains.
