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U.S. to spend more than $3 billion on EV battery manufacturing

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The funds will be allocated by the U.S. Department of Energy
from the $1 trillion infrastructure bill Biden signed last year.

The funds will be allocated by the U.S. Department of Energy
from the $1 trillion infrastructure bill Biden signed last year.

The Biden administration will
allocate more than $3 billion in infrastructure funding to
finance electric vehicle (EV) battery manufacturing, U.S.
officials said on Monday.

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The funds will be allocated by the U.S. Department of Energy
from the $1 trillion infrastructure bill Biden signed last year.
Among the initiatives will be processing of minerals for use in
large-capacity batteries and recycling those batteries, the
agency said in a statement.

Biden wants half of vehicles sold to be electric by 2030, a
goal he hopes will boost unionised manufacturing jobs in key
election battleground states, thwart Chinese competition in a
fast-growing market and reduce climate-changing carbon
emissions.

The administration is also positioning the measures as a
step to secure energy independence and cut long-term inflation
pressures exacerbated by Russia’s Feb. 24 invasion of Ukraine.

“As we face this Putin price hike on oil and gas, it’s also
important to note that electric vehicles will be cheaper over
the long haul for American families,” Mitch Landrieu, the White
House infrastructure coordinator, told reporters in a briefing,
referring to Russian President Vladimir Putin.

The latest funding will help establish and retrofit battery
factories. The infrastructure law also allocated billions more
for the government to purchase electric buses and install EV
chargers. The administration has been collaborating with
manufacturers including Tesla Inc CEO Elon Musk, General Motors CEO Mary Barra and Ford
Motor CEO Jim Farley.

But the new funds will not go toward developing new domestic
mines to produce the lithium, nickel, cobalt and other
high-demand minerals needed to make those batteries. Some of
those projects face local opposition and are tied up in Biden
administration environmental and legal reviews.

“These resources are about battery supply chain, which
includes producing, recycling critical minerals without new
extraction or mining,” said Gina McCarthy, Biden’s national
climate adviser. “So that’s why we’re all pretty excited about
this.”

In March, Biden invoked the Cold War-era Defense Production
Act to support the production and processing of those minerals.
He requested funding to support that initiative
last week as part of a $33 billion package on Ukraine-related
initiatives.



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