The Biden administration on Monday announced a new $3.16 billion investment in American production of electric car batteries, part of the president’s broader plan to expand the manufacturing of electric vehicles and charging networks and reduce U.S. reliance on oil.

What You Need To Know

  • The Biden administration on Monday announced a new $3.16 billion investment in domestic production of electric car batteries

  • The money will come from the $1.2 trillion Bipartisan Infrastructure Law, which included $7 billion to strengthen the U.S. battery supply chain and $7.5 billion to build out the EV charging network across the United States

  • The announcement is part of the president’s broader plan to expand the manufacturing of electric vehicles and charging networks and reduce U.S. reliance on oil

  • It comes as the price of gas has remained high and energy prices have surged due to the Russian invasion into Ukraine and resulting sanctions on Russian oil

The money will come from the Bipartisan Infrastructure Law signed in late 2021, which included $7 billion to strengthen the U.S. battery supply chain and $7.5 billion to build out the EV charging network across the United States.

“The future is electric,” said infrastructure law coordinator Mitch Landrieu. “This is both going to help us fight against climate change, [and] it's also going to make us more secure and energy independent.”

President Joe Biden has set a goal to have electric vehicles be 50% of car sales by 2030.

The $3.16 billion announced Monday is set aside for grants to domestic companies who work on battery manufacturing, processing and recycling. 

It comes as the price of gas has remained high and energy prices have surged due to the Russian invasion into Ukraine and resulting sanctions on Russian oil.

The Department of Energy officially unveiled the funding Monday, which they described as part of a "whole-of-government supply chain strategy to strengthen America’s energy independence to reduce our reliance on competing nations."

An energy official on Monday estimated the new funding will be broken up into about 30 grants.

“This is an effort to try to help seed dozens of companies across the United States to build capacity in a way that we have not done in decades,” said Brian Deese, director of the National Economic Council, on a call with reporters Monday.

One key element of battery manufacturing is the domestic sourcing of critical materials such as lithium, cobalt, nickel and graphite, officials said, an industry currently dominated by China.

The president signed an executive order in February to boost U.S. mining of critical materials. And as part of its supplemental funding request for the war in Ukraine, the White House called on Congress last week to fund a similar effort that would use Defense Production Act authority.

Biden had traveled to North Carolina last month to call for Congress to boost domestic manufacturing, highlighting an announcement from Toyota that it will build an electric battery plant in Greensboro. It will create an estimated 1,750 jobs.

“A major fundamental shift is taking place,” Biden said at North Carolina Agricultural and Technical State University. “And America is finally deciding to catch up and lead it instead of being outpaced by China and other countries.”