Biden Continues to Invest in the Electric Vehicle Supply Chain in the United States

To combat human-caused climate change, transportation electrification will be crucial. Transportation is one of the greatest contributors to greenhouse gas emissions in the United States, accounting for nearly one-third of annual emissions.

The White House is also trying to build a nationwide network of Electric vehicle charging stations and provide tax incentives for people who buy EVs, with an objective of 50% EVs by 2030. By 2035, the administration plans to convert its 600,000-strong federal fleet to electric power. After China and Europe, the United States is the third-largest EV market in the world. According to Canalys, a market research firm, only 4% of new automobiles sold in the United States last year were electric. The President of the US has expressed his desire to see electric vehicles become more widely adopted.

President Biden has been chastised for using government expenditures to fuel inflation. It’s not going to stop him from maintaining the spigot open in order to fund an electric vehicle supply chain in the United States.

Another $500 million was inserted into the Ukraine aid bill signed by Biden late last month to expand money allowed under the Defense Production Act to purchase crucial battery minerals such as lithium, nickel, cobalt, and graphite. When the president used the Defense Production Act in March, mining companies had access to a $750 million fund. The Ukraine bill also increased the size of grants available and added the United Kingdom and Australia to the list of countries eligible for funding, in addition to the United States and Canada.

All of this is in addition to the $7 billion in government financing included in last year’s bipartisan infrastructure plan. Battery manufacturing, recycling, and materials processing are among the industries targeted by these incentives, which companies are vying for. Biden’s utilization of the Defense Production Act, which is a Cold War-era measure that President Trump also used to tackle supply shortages at the start of the outbreak, is centered on mining and recycling.

American Resources, based in Indiana, has found a means to handle recovered battery materials that is cleaner and safer than what is presently performed in China, as per Chief Executive Officer (CEO) Mark Jensen.

This method, which was developed by scientists at numerous universities and Eli Lilly, utilizes techniques from the pharmaceutical sector to isolate and purify specific elements so that they may be turned into production-ready cathode element. The two parts of a battery which store lithium ions are called cathodes and anodes. According to him, the federal funding would only cover a small portion of the company’s capital spending.

Beyond the funding, the government grant procedure is forcing enterprises to find allies and organize who will take on which supply chain piece, according to Jensen. He’s already in contact with a number of automakers that are scrambling to discover domestic sources for battery materials.

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