VINACHEM

The Biden administration is allocating up to $3.5 billion from the federal 2021 infrastructure law to ramp up domestic production of advanced batteries and battery materials, the US Energy Department said Nov. 15.

The funds will be granted to projects focused on battery-grade processed critical minerals, battery precursor materials, battery components and cell and pack manufacturing, the DOE said in a statement. Concept papers for projects seeking funding are due Jan. 9, 2024, while full applications are due March 19, it said.

"Positioning the US front and center to meet the growing demand for advanced batteries is how we boost our global competitiveness, maintain and create good-paying jobs, and strengthen our clean energy economy," Energy Secretary Jennifer Granholm said.

The latest funding package represents the second phase of the $6 billion provided by the infrastructure law. Under the first phase, the DOE awarded funds to 15 projects that catalyzed over $5.8 billion in public/private investment, the DOE said.

The investment is administered by DOE's Office of Manufacturing & Energy Supply Chains and supports the US government's efforts to build a domestic supply chain for electric vehicles.

The US aims to achieve a net-zero emissions economy by 2050, with a goal for EVs to make up half of all new light-duty vehicle sales by 2030.

US reiterates critical minerals focus with Japan

The US also reinforced its commitment Nov. 14 to work with Japan on a critical mineral supply chain partnership that will bolster electrification initiatives.

"We are committed to continuing to support local value creation in critical minerals supply chains, including processing and refining, to ensure those supply chains remain robust, resilient, responsible and transparent," US and Japan trade officials said in a joint statement released by the US Commerce Department.

"We plan to continue our collaboration through the Minerals Security Partnership to strengthen supply chains for critical minerals; promote responsible and sustainable investment in extraction, processing, and recycling; and to drive high Environmental, Social, and Governance standards in order to reduce dependence on certain countries," they added.

The MSP is a group set up by the International Energy Agency to foster global and sustainable critical mineral supply chains.

The US has looked to foster trade pacts with Japan, Australia, South Korea, the UK and the EU that focus on critical minerals and battery supply chains since the establishment of the country's Inflation Reduction Act in 2022.

Canada announces separate battery funding

Canadian also announced its latest funding Nov. 14 in support of its domestic battery supply chain with an announced C$204.5 million ($149.5 million) award. The grant will support battery company E-One Moli with the construction of its C$1 billion lithium-ion battery cell manufacturing facility in Maple Ridge, British Columbia, near Vancouver.

"Today, as we secure a major clean battery manufacturing project in Maple Ridge, we build on that expertise to secure hundreds of middle-class jobs while fighting climate change," Canada Prime Minister Justin Trudeau said in a statement. "The world is looking to Canada. When we support projects like E-One Moli's new facility in Maple Ridge, we bolster Canada's role as a global clean tech leader, we create good jobs, and we help keep our air clean."

E-One Moli's new factory will be able to produce up to 135 million battery cells annually, and it will be Canada's largest factory for high performance lithium-ion battery cell production. The Government of British Columbia will contribute an additional C$80 million for the construction of the facility.

Construction of the facility is expected to begin in 2024 with operations slated to commence in 2028.  – Platts –