U.S. to spend more than $3 billion on EV battery manufacturing -White House -Breaking
[ad_1]
© Reuters. FILE PHOTO – Machines can be seen at a line for making batterytrays during a visit to the Mercedes-Benz Electric Vehicle Battery Factory. This is one of seven factories that produce batteries for fully-electric Mercedes-EQ models.By Trevor Hunnicutt
WASHINGTON, (Reuters) – The Biden administration will provide more than $3Billion in infrastructure financing to support electric vehicle manufacturing. Officials from the United States announced Monday.
U.S. Department of Energy has allocated the money from last year’s $1 trillion infrastructure bill. According to the agency, one of the projects will include the recycling and processing of small-capacity lithium batteries.
Biden hopes to see half the vehicles sold be electric by 2030. This goal will help boost unionized manufacturing jobs and combat Chinese competition on a rapidly-growing market. It also helps reduce climate-changing carbon emissions.
This administration also sees the steps as an opportunity to increase energy independence and reduce inflationary pressures that have been exacerbated since Russia invaded Ukraine on February 24th.
In a briefing Mitch Landrieu (White House Infrastructure Coordinator) said that while we are facing the Putin price rise on oil and gasoline, electric cars will prove to be more affordable over the long-term for American families. He was referring to Russian President Vladimir Putin.
New funding will be used to establish or retrofit batteries factories. In addition, the infrastructure law provided billions of dollars for the purchase and installation of electric buses. The government has collaborated with many manufacturers such as Tesla (NASDAQ:) Inc Chief executive Officer Elon Musk and General Motors (NYSE;) CEO Mary Barra.
However, the funds will not be used to develop new mines in the country to extract the high-demand minerals lithium, nickel, cobalt or other needed materials to make these batteries. Some of the projects have local opposition. They are also subject to legal and environmental reviews by Biden.
Gina McCarthy (Biden’s national climate advisor) stated that these resources concern battery supply chain. This includes the production, recycling and extraction of critical minerals, without any new mining or extraction. We’re all very excited about it.
Biden used the Cold War-era Defense Production Act in March to encourage the mining and processing of such minerals. As part of the $33 billion package for Ukraine-related projects, Biden requested funds to finance that initiative.
[ad_2]