On September 20th, local time, the U.S. Department of Energy announced funding of over $3 billion to 25 selected projects in 14 states in the United States to promote the production of more advanced batteries and battery materials domestically.

This funding is also part of the Biden administration's plan to promote the production and sale of electric vehicles, as well as a key element in their efforts to mitigate climate change and build a U.S. manufacturing strategy. The subsidized companies are mainly engaged in processing lithium, graphite, or other battery materials, or producing components for electric vehicle batteries.

The U.S. Department of Energy stated that by the end of this decade, the lithium battery market could expand by a factor of 5-10, making domestic investment crucial. This is the second round of funding provided by the U.S. government for electric vehicle battery projects, following a previous allocation of $1.8 billion to 14 projects.

White House economic adviser Brian stated, "Today's funding brings us closer to achieving the government's goal of establishing an end-to-end supply chain for batteries and critical minerals in the United States, from mining to processing, manufacturing, and recycling, which is crucial for reducing foreign dependence."

Brian stated on Thursday that the Biden administration is committed to manufacturing batteries in the United States because it is crucial for the country's electric grid, households, businesses, and iconic American automotive industry.

With the latest funding of over $3 billion, the U.S. government's subsidies for critical minerals and battery supply chains will reach $35 billion. Projects include large lithium mines from Nevada and North Carolina to battery factories in Michigan and Ohio, as well as rare earth and magnet production in California and Texas.

Brian pointed out that the U.S. government has utilized various tools ranging from grants and loans to tax credits, and since Biden took office, it has leveraged over $100 billion in private sector investment.

US energy officials state that after the selection of 25 projects, there will be 8,000 construction jobs and over 4,000 permanent jobs. The corresponding companies will also need to contribute an amount equal to the subsidy, with an investment of at least 50 million US dollars.

It is reported that among the selected projects, US-based Albemarle will receive 67 million US dollars for a project in North Carolina to produce anode materials for battery. Honeywell will receive 0.1266 billion US dollars to establish a factory for electrolyte salts in Louisiana.

Dow Inc. will receive 0.1 billion US dollars to produce battery-grade carbonate solvents for lithium-ion battery electrolytes. American Battery will receive 0.15 billion US dollars to establish a lithium-ion battery recycling facility in South Carolina.

Matthew McDowell, Associate Professor of Engineering at the Georgia Institute of Technology, believes that while government funding may not have a decisive impact on certain projects, the funding injection from infrastructure and climate bills in recent years has greatly transformed the US battery manufacturing industry.

McDowell added that he is excited about the next generation of clean energy storage batteries, including solid state batteries, which may store more energy than lithium-ion batteries.