The White House on Wednesday detailed a $2.8 billion grant to build a domestic EV battery supply chain, but most of the funds in this allocation go to projects in states that oppose climate action. and states where legislators voted against the law.
According to a White House press release, part of the bipartisan Infrastructure Act passed in 2021, the funding will go to 20 companies that make batteries and process raw materials for projects. across 12 states. The White House noted, when matched by recipients, the total amount of funding is more than $9 billion.
Battery supply chain projects funded by bipartisan Infrastructure Law
But like New York Times indicates that the cash flows, announced just weeks before the consequential midterm elections, are weighted towards the red states. The list of states where projects receive federal funding include: Alabama, Georgia, Kentucky, Louisiana, Missouri, Nevada, New York, North Carolina, North Dakota, Ohio, Tennessee, and Washington.
The goals of this grant include developing a sufficient lithium supply for approximately two million EVs annually, graphite for 1.2 million EVs annually, and nickel for 400,000 EVs annually.
Volkswagen ID.4 built in Chattanooga
The grants will also fund an expanded refining and production infrastructure, including the first commercial-scale lithium electrolyte salt production facility in the United States, the largest domestic silicon oxide production facility in the United States. first commercial tissue (for battery anode) and first US lithium iron phosphate (LFP) cathode base. Another project is an electrode binder facility that aims to meet 45% of the demand for battery adhesives by 2030.
In addition to funding battery infrastructure, the bipartisan Infrastructure Act also provides $7.5 billion for the creation of a national EV charging network now included plans for all 50 states.
2022 GMC Hummer EV pre-production at Factory Zero in Detroit, Michigan
Outside of the bipartisan Infrastructure Law, the Department of Energy earlier this year designated over 3 billion dollars for the domestic supply chain, and the Biden Administration has transition to the Defense Production Act to reinforce the battery material.
This will lead to more affordable electric vehicles in the long run. In a more immediate consumption sense and in the short term, the Inflation Reduction Act (IRA) and the improved EV tax credit would make sense Affordable lower EVs.
