President Biden To Launch Over $3 Billion For US EV Battery Production

A lack of batteries means a lack of EVs, and we're already in the midst of a major shortage.

By: Steven Loveday

May 3, 2022 at 8:59am ET

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As electric cars become more popular, we're going to need more batteries. President Biden has made it clear from the beginning that he not only supports EVs in general, but more specifically, those made in the US. Now, the Biden Administration has announced its efforts to funnel $3.16 billion into EV battery manufacturing in the US.

If you've been following Biden's plans to assist with EVs, you'll know that this isn't the first effort, and there are others still in the pipeline. However, no matter how many plans the administration makes to advocate for EVs and make them more affordable and widely available, a lack of batteries means a lack of EVs.

It comes as no surprise President Biden wants battery manufacturing to ramp up domestically. Amid the Russian invasion of Ukraine, countries across the globe are making plans to become more energy independent. Biden vows to help make the US a global leader with EVs, and high-volume domestic battery production is absolutely key. According to Teslarati, US Secretary of Energy Jennifer Granholm said:

“Positioning the United States front and center in meeting the growing demand for advanced batteries is how we boost our competitiveness and electrify our transportation system."

The Biden Administration announced this week that the ~$3 billion in funding will come in the form of grants to develop and construct battery production facilities on our shores. The money is part of the larger $1 trillion infrastructure plan that passed earlier. Not only will the new measure work to make more batteries available in the future, but it will also create more US jobs. According to CNBC (via Teslarati), White House National Climate Advisor Gina McCarthy shared with reporters:

“These made-in-America batteries are going to help reduce emissions and create opportunities across the country."

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The Administration further emphasized its goal to replace many of the vehicles in the government's fleet with electric vehicles. It went on to state that by 2030, some 50 percent of all new vehicle sales should be electric, suggesting that by 2035, 600,000 federal vehicles will be EVs.

EV adoption is surging in the US, as it's now adopting electric cars at a rate that's in the third position globally, behind China and Europe. That said, Teslarati shares that only 4 percent of vehicles sold in the US in 2021 were EVs.

Sources: Teslarati, CNBC