The U.S. Department of Energy (DOE) announced on Monday funding of $3 billion in funding to support domestic battery production, supply chain development and recycling, aimed at boosting boost the Biden’s administration’s goals to significantly ramp vehicle electrification in the U.S., and to bolster the country’s energy independence.

The new funding is being made available under the Bipartisan Infrastructure Law, which allocates more than $7 billion through 2028 to investments in the U.S. battery supply chain. The advancement of clean mobility has been a key focus area for the Biden administration, with an executive order signed last year mandating that zero emissions vehicles make up half of new vehicle sales in the U.S. by 2030. Earlier this year, the administration announced the allocation of $5 billion over five years for the development of an EV charging network across the interstate highway system.

In order to meet the rapidly growing demand for electric vehicles, U.S. and global automakers have introduced plans to dramatically expand North American electric vehicle and battery production over the next few years, including several multibillion dollar investment announcements from companies including GM, Ford and Toyota.

The Bipartisan Infrastructure Law’s U.S. battery supply chain allocations include investments in the production and recycling of critical minerals without new extraction or mining and sourcing materials for domestic manufacturing. According to the DOE, the announced funding will support the creation of new, retrofitted, and expanded commercial facilities as well as manufacturing demonstrations and battery recycling.

In addition to the $3.1 billion supply chain investments, the DOE also announced $60 million in funding to support second-life applications for used EV batteries, and for new processes for recycling materials back into the battery supply chain.

U.S. Secretary of Energy Jennifer M. 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. President Biden’s historic investment in battery production and recycling will give our domestic supply chain the jolt it needs to become more secure and less reliant on other nations—strengthening our clean energy economy, creating good paying jobs, and decarbonizing the transportation sector.”

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