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Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Department of Energy (DOE) this week announced $3.1 billion in funding to support the domestic manufacturing of batteries and components, primarily to bolster production of electric cars.
Grants will be made available to support the creation of new, retrofitted and expanded commercial facilities as well as manufacturing demonstrations and battery recycling, the DOE said in a May 2 press release. The department also announced $60 million in funding to support second-life applications for batteries once used to power electric vehicles, as well as new processes for recycling materials back into the battery supply chain.
Industrial Info is tracking eight projects in the U.S., worth $2.3 billion, that involve the extraction and processing of lithium for batteries. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a list of detailed project reports. The projects range from $60 million to $840 million in value.
Tesla Incorporated's (NYSE:TSLA) (Austin, Texas) lithium hydroxide refinery in Austin, part of its cybertruck gigafactory in the Lone Star State, is in the late planning stage. The refinery will turn hard rock spodumene ore into lithium hydroxide, which is used in battery cells. The project is planned to kick off in 2023, with completion in the following year. Subscribers can click here for the project report.
Meanwhile, Li-Cycle Corporation's (NYSE:LICY) (Mississauga, Canada) Lithium Hydrometallurgical Refinery Hub in Rochester, New York, already is under construction. The hub will be able to process 35,000 tons per year of battery material, or enough for as many as 225,000 electric vehicles per year. Completion is expected in 2023. Subscribers can click here for more information.
The federal grant program is aimed at reducing U.S. reliance on imports of critical minerals such as lithium, cobalt, nickel and graphite from competing foreign nations. According to The New York Times, those minerals needed for electric car batteries and energy storage are processed primarily in Asia, with China alone controlling nearly 80% of the world's processing and refining of those critical minerals.
The program also will support the Biden administration's goal to have electric vehicles make up half of all vehicle sales in the U.S. by 2030, in order to reduce carbon emissions, the DOE said.
With the global lithium-ion battery market expected to jump in the next decade, the DOE said it was working with industries to prepare the U.S. for the increased demand. As of the end of March 2022, more than 2.5 million plug-in electric vehicles have been sold in the U.S.
"Battery costs have fallen more than 90% since 2008, and energy density and performance have increased rapidly, paving the way for an accelerated transition to zero-emission vehicles," the DOE said.
Several lawmakers from the nation's premier automaking state, Michigan, chimed in.
"For too long, other countries have been outpacing the United States in funding new technologies. We are at a critical moment in our competition to build the next generation of electric vehicles and batteries here in America and to secure Michigan's automotive leadership in these next generation vehicles," said Senator Debbie Stabenow (Democrat-Michigan).
The funding is part of the $1 trillion bipartisan infrastructure law that was passed last year, which included $7 billion to strengthen the U.S. battery supply chain, including producing and recycling critical minerals without new extraction or mining and sourcing materials for domestic manufacturing.
The program is one of the goals of the National Blueprint for Lithium Batteries, which was authored last year by the Federal Consortium for Advanced Batteries, and led by the DOE and the departments of Defense, Commerce and State.
The other goals stated in the blueprint include:
Grants will be made available to support the creation of new, retrofitted and expanded commercial facilities as well as manufacturing demonstrations and battery recycling, the DOE said in a May 2 press release. The department also announced $60 million in funding to support second-life applications for batteries once used to power electric vehicles, as well as new processes for recycling materials back into the battery supply chain.
Industrial Info is tracking eight projects in the U.S., worth $2.3 billion, that involve the extraction and processing of lithium for batteries. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a list of detailed project reports. The projects range from $60 million to $840 million in value.
Tesla Incorporated's (NYSE:TSLA) (Austin, Texas) lithium hydroxide refinery in Austin, part of its cybertruck gigafactory in the Lone Star State, is in the late planning stage. The refinery will turn hard rock spodumene ore into lithium hydroxide, which is used in battery cells. The project is planned to kick off in 2023, with completion in the following year. Subscribers can click here for the project report.
Meanwhile, Li-Cycle Corporation's (NYSE:LICY) (Mississauga, Canada) Lithium Hydrometallurgical Refinery Hub in Rochester, New York, already is under construction. The hub will be able to process 35,000 tons per year of battery material, or enough for as many as 225,000 electric vehicles per year. Completion is expected in 2023. Subscribers can click here for more information.
The federal grant program is aimed at reducing U.S. reliance on imports of critical minerals such as lithium, cobalt, nickel and graphite from competing foreign nations. According to The New York Times, those minerals needed for electric car batteries and energy storage are processed primarily in Asia, with China alone controlling nearly 80% of the world's processing and refining of those critical minerals.
The program also will support the Biden administration's goal to have electric vehicles make up half of all vehicle sales in the U.S. by 2030, in order to reduce carbon emissions, the DOE said.
With the global lithium-ion battery market expected to jump in the next decade, the DOE said it was working with industries to prepare the U.S. for the increased demand. As of the end of March 2022, more than 2.5 million plug-in electric vehicles have been sold in the U.S.
"Battery costs have fallen more than 90% since 2008, and energy density and performance have increased rapidly, paving the way for an accelerated transition to zero-emission vehicles," the DOE said.
Several lawmakers from the nation's premier automaking state, Michigan, chimed in.
"For too long, other countries have been outpacing the United States in funding new technologies. We are at a critical moment in our competition to build the next generation of electric vehicles and batteries here in America and to secure Michigan's automotive leadership in these next generation vehicles," said Senator Debbie Stabenow (Democrat-Michigan).
The funding is part of the $1 trillion bipartisan infrastructure law that was passed last year, which included $7 billion to strengthen the U.S. battery supply chain, including producing and recycling critical minerals without new extraction or mining and sourcing materials for domestic manufacturing.
The program is one of the goals of the National Blueprint for Lithium Batteries, which was authored last year by the Federal Consortium for Advanced Batteries, and led by the DOE and the departments of Defense, Commerce and State.
The other goals stated in the blueprint include:
- Secure access to raw and refined materials and discover alternatives for critical minerals for commercial and defense applications.
- Stimulate the U.S. electrode, cell, and pack manufacturing sectors.
- Enable U.S. end-of-life reuse and critical materials recycling at scale and a full competitive value chain in the U.S.
- Maintain and advance U.S. battery technology leadership by supporting scientific research and development, science, technology, engineering and math (STEM) education and workforce development.
