US to spend more than $3B on EV battery manufacturing - White House
The funds will be allocated by the U.S. Department of Energy from the $1 trillion infrastructure bill Biden signed last year
Check out what's clicking on FoxBusiness.com.
WASHINGTON - The Biden administration will allocate more than $3 billion in infrastructure funding to finance electric vehicle (EV) battery manufacturing, U.S. officials said on Monday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 311.18 | -19.06 | -5.77% |
| GM | GENERAL MOTORS CO. | 57.62 | -0.09 | -0.16% |
| F | FORD MOTOR CO. | 11.07 | -0.03 | -0.27% |
The funds will be allocated by the U.S. Department of Energy from the $1 trillion infrastructure bill Biden signed last year. Among the initiatives will be processing of minerals for use in large-capacity batteries and recycling those batteries, the agency said in a statement.
Biden wants half of vehicles sold to be electric by 2030, a goal he hopes will boost unionized manufacturing jobs in key election battleground states, thwart Chinese competition in a fast-growing market and reduce climate-changing carbon emissions.
US AGENCY OPENS PROBE INTO ELECTRIC VEHICLE BATTERIES
The administration is also positioning the measures as a step to secure energy independence and cut long-term inflation pressures exacerbated by Russia's Feb. 24 invasion of Ukraine.
"As we face this Putin price hike on oil and gas, it's also important to note that electric vehicles will be cheaper over the long haul for American families," Mitch Landrieu, the White House infrastructure coordinator, told reporters in a briefing, referring to Russian President Vladimir Putin.
Machines are seen on a battery tray assembly line during a tour at the opening of a Mercedes-Benz electric vehicle Battery Factory, marking one of only seven locations producing batteries for their fully electric Mercedes-EQ models, in Woodstock, Ala … (REUTERS/Elijah Nouvelage/File Photo)
The latest funding will help establish and retrofit battery factories. The infrastructure law also allocated billions more for the government to purchase electric buses and install EV chargers. The administration has been collaborating with manufacturers including Tesla Inc Chief Executive Officer Elon Musk, General Motors CEO Mary Barra and Ford Motor CEO Jim Farley.
But the new funds will not go toward developing new domestic mines to produce the lithium, nickel, cobalt and other high-demand minerals needed to make those batteries. Some of those projects face local opposition and are tied up in Biden administration environmental and legal reviews.
President Joe Biden and the White House COVID-19 Response Team participate in a virtual call with the National Governors Association from the South Court Auditorium of the Eisenhower Executive Office Building of the White House Complex on Monday, Dec … (Kent Nishimura / Los Angeles Times via Getty Images / Getty Images)
"These resources are about battery supply chain, which includes producing, recycling critical minerals without new extraction or mining," said Gina McCarthy, Biden's national climate adviser. "So that's why we're all pretty excited about this."
GET FOX BUSINESS ON THE GO BY CLICKING HERE
In March, Biden invoked the Cold War-era Defense Production Act to support the production and processing of those minerals. He requested funding to support that initiative last week as part of a $33 billion package on Ukraine-related initiatives.