US Department of Energy funding is supporting the growing demand for electric vehicles and energy storage by increasing the production, processing and recycling of batteries. Tesla, which has battery manufacturing in the US, could benefit from the new $3.1 billion bipartisan infrastructure law announced by the Biden administration.
The United States Department of Energy (DOE) today announced $3.1 billion in funding from President Biden’s Bipartisan Infrastructure Law to make more batteries and components in America, bolster domestic supply chains, create good-paying jobs, and help lower costs for families. The Department of Energy is also announcing a separate $60 million to support second-life applications for batteries once used to power EVs, as well as new processes for recycling materials back into the battery supply chain. The goal is to have electric vehicles account for half of all car sales in America by 2030.
“Positioning the United States front and center in meeting the growing demand for advanced batteries is how we boost our competitiveness and electrify our transportation system,” said U.S. Secretary of Energy Jennifer M. Granholm. “President Biden’s historic investment in battery production and recycling will give our domestic supply chain the jolt it needs to become more secure and less reliant on other nations—strengthening our clean energy economy, creating good paying jobs, and decarbonizing the transportation sector.”
The global lithium-ion battery market is expected to grow rapidly over the next decade, so the Department of Energy is working with the industry to prepare the United States for increased market demand.
“For too long, other countries have been outpacing the United States in funding new technologies. We are at a critical moment in our competition to build the next generation of electric vehicles and batteries here in America and to secure Michigan’s automotive leadership in these next generation vehicles. Thanks to our bipartisan efforts in Congress, and with the President’s leadership, this funding will help us win this race by investing in our supply chain and manufacturing here at home. Our workers are the best in the world, and there’s nothing more American than ensuring that our products and technology are built in America,” said Senator Debbie Stabenow (MI).
“I secured provisions in the Bipartisan Infrastructure Law to support the domestic critical mineral supply chain used in battery production,” said U.S. Senator Catherine Cortez Masto (NV). “Nevada’s innovation economy is at the forefront of battery manufacturing and recycling, and the infrastructure law could bring vital new investments to the state.”
Tesla is one of the companies that could benefit from the new law, which will have a positive impact on business. The manufacturer, over the past years, has been busy developing and manufacturing its own 4680 battery cells, which were officially introduced in 2020. Today, Tesla has a battery manufacturing facility in Fremont and should soon start manufacturing batteries at Giga Texas.
Although the details of the law are not yet known, there is also the possibility that Tesla will not receive funding under it. The Biden administration is pro-union, so it can fight in every possible way so that Tesla, whose workers refuse unions, does not receive funding. Although participation in this program could be a pleasant bonus for the manufacturer, Tesla is also steadily growing thanks to its own capital, guaranteeing itself and the US battery industry one of the leading positions in the segment.
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