The United States has announced funding of $3.1 billion to make electric vehicle batteries. This is President Joe Biden’s strategy to strengthen US energy independence and increase sales of electric cars.
US Energy Secretary Jennifer M. Granholm said the budget would put the US at the forefront of meeting demand for electric batteries. In addition this step was taken to develop the US transportation system. “President Biden’s historic investment in battery production and recycling will strengthen clean energy, create well-paying jobs, and decarbonize the transportation sector,” Granholm said in a statement to the US Department of Energy, Tuesday (3/5).
The US expects the global lithium-ion battery market to grow over the next decade. In addition, by the end of March 2022, more than 2.5 million plug-in electric vehicles had been sold in the country.
The cost of manufacturing batteries has fallen by more than 90% since 2008. Therefore, the Ministry of Energy will work closely with industry to prepare for an increase in the electric vehicle market.
Senator Debbie Stabenow said the United States had been left behind by other countries in funding new technology. Therefore this funding will help the country win the race.
“We are at a critical juncture in the competition to build the next generation of electric vehicles and batteries,” said Stabenow.
The US Department of Energy has also issued a 100-day review of the large-capacity battery supply chain. They will also release recommendations for production capabilities and components that can be supplied domestically. BloombergNEF data shows the population of electric battery-based cars could reach 65.99 million units or 68 percent of the total car population in 2040. In 2021, the car population will be 3.33 million units or 4.3 percent of the world’s total car units.