The US Wants to Produce More Batteries

The DOE (Department of Energy) in the United States is working to boost domestic battery production. Recently, the DOE declared that it would give $3.5 billion to businesses that manufacture batteries and the vital minerals that go into them. Batteries are viewed by officials as a key climate answer. The gadgets can store sustainable energy produced by wind turbines or solar panels and power automobiles. Less fossil fuels will be used by vehicles and power plants. The preferred battery for sustainable energy storage and electric vehicles right now is lithium ion. The DOE seeks to improve the availability. According to agency projections, there might be a ten-fold increase in the demand for lithium batteries by 2030.

The administration of President Joe Biden has set a target of eliminating all pollution by the year 2050. Additionally, by 2030, it hopes that 50% of all new car sales will be electric vehicles. There is a fear among certain officials, industry professionals, and others that the supply of battery materials may not meet the demand. Some worry that Asia is home to an excessive amount of the sector. Texas A&M University’s Jodie Lutkenhaus said she keeps a careful eye on the manufacturing and production of batteries in the United States. “I’m concerned that we might not make progress and find ourselves in a similar circumstance as the semiconductor industry,” the speaker expressed. Asia’s manufacturing was hindered by pandemic-related closures and suspensions. This led to a scarcity of microchips, which impacted the supply of automobiles and electronic goods.

“If we don’t diversify where batteries are made and where materials are sourced, the same thing can happen with batteries,” Lutkenhaus warned. She claimed that in order to prevent any future global shortages, American participation in battery development and manufacture is essential. The Bipartisan Infrastructure Law is a piece of legislation that offers $6 billion in total funding for the production of batteries, including the preparation of the raw materials required to create them. Fifteen projects have benefited from the support thus far. Among these are businesses that mine materials used in lithium batteries, such as nickel and graphite. Contracts will then be awarded to other businesses, such as those in finance and chemistry. This is how it operates: A business may wish to construct a factory to produce unique materials for electric vehicles. It pledges to pay for half of the facility’s estimated construction costs. The government payment would cover the remaining half if the company is chosen for the program.

 

 

 

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