The Biden administration on Wednesday announced $2.8 billion in grants to boost the electric vehicle battery supply chain — funding projects to produce things like battery-grade lithium, graphite nickel and binding material, in an effort to break the U.S. away from its dependence on foreign suppliers.
Demand for electric vehicles in the U.S. has ticked up in recent years, doubling their market share in 2021 and continuing to grow in 2022, according to the International Energy Agency. Kelley Blue Book announced Wednesday that electric vehicle sales hit a record in the third quarter of 2022, “outpacing the rest of the industry.”
And under President Joe Biden, the federal government has bet big on EVs — from money in the bipartisan infrastructure law and semiconductor bills to a historic investment in clean energy in the Democrats-only climate, tax and health care law. Early in his presidency, Biden set a goal to make electric vehicles half of all new vehicles sold by 2030.
The $2.8 billion announced Wednesday comes from the infrastructure law passed last fall. It will fund projects in Alabama, Georgia, Kentucky, Louisiana, Missouri, Nevada, New York, North Carolina, North Dakota, Ohio, Tennessee, and Washington.
The projects include efforts to make enough lithium to supply two million EVs each year, the White House said, plus enough graphite to supply 1.2 million.
The money will also help create an electrode binder facility, a key element of assembling batteries. The project could fulfill 45% of U.S. binder demand in 2030.
A senior administration official briefing reporters Wednesday morning said that the United States is currently “completely dependent on foreign suppliers” for these critical battery materials, with China controlling most of the output.
Electric vehicles are still expensive and out of reach for many. Kelley Blue Book reported the average price of a new EV last month was $65,291, aligning more with luxury vehicle pricing.
This is a developing story. Check back later for updates.
