Dept. of Energy takes $3b step to combat Chinese EV batteries in U.S.

The United States is taking a drastic $3 billion step to combat Chinese electric vehicle batteries from entering the market while incentivizing companies to invest in domestic cell production.

The U.S. Department of Energy said it would award $3 billion to 25 battery manufacturing sector projects across 14 U.S. states in an effort to bring cell production to the U.S. and away from China.

It previously awarded $1.82 billion to just 14 projects, but the number has been increased.

U.S. Secretary of Energy Jennifer M. Granholm said:

“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. 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.”

China has dominated the EV battery market as companies like CATL and LG Energy Solutions supply many companies with their cells.

The U.S. is attempting to bolster U.S. production with various incentives, including this new one that will generate $16 billion in total investment and create 12,000 production and construction jobs.

Several projects have already been slotted out as winners of a portion of the grant.

Albemarle will get $67 million for a project in North Carolina to produce commercial quantities of anode material for next-gen lithium-ion batteries. Honeywell also will get just over $126 million to build a facility in Louisiana to produce electrolyte salt needed for lithium batteries.

Dow is also slotted to get $100 million to produce battery-grade carbonate solvents for electrolytes used in lithium-ion batteries. Clarios Circular Solutions, in partnership with SK ON and Cosmo Chemical, will get $150 million for a project in South Carolina.

These are just a handful of the awards that will be given in total, as the U.S. government is trying to bring and keep more companies here for production and manufacturing.

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