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The US Department of Energy announced a $3.5 billion investment from the 2021 infrastructure law to enhance the nation’s battery production and materials supply. This funding is part of President Joe Biden’s initiative to strengthen domestic battery manufacturing and supply chains.

The investment is focused on expanding domestic facilities for critical minerals, next-generation technologies, and lithium-based technologies.

US Secretary of Energy Jennifer Granholm emphasized the importance of this move, stating, “Positioning the United States front and center to meet the growing demand for advanced batteries is how we boost our global competitiveness, maintain and create good-paying jobs, and strengthen our clean energy economy.”

China holds significant dominance in the global electric vehicle (EV) battery supply chain, a fact underscored by its recent imposition of export controls on graphite, an essential anode material. This has raised significant concern for US officials and EV manufacturers.
The investments came after two senators urged the Energy Department to take decisive steps to enhance US capabilities in battery manufacturing and advanced battery research earlier this month. Their appeal cited China’s sector dominance and export control measures as key concerns.