The U.S. Department of Energy (DOE) has announced a significant $3bn investment in battery manufacturing and materials production to bolster the domestic supply chain.
Spanning across 14 states, the 25 projects selected under this initiative aim to create thousands of jobs while positioning the US as a global leader in clean energy and battery technology.
$3bn for US battery manufacturing growth
The DOE’s multi-billion dollar investment package will be allocated to expand the domestic production of advanced batteries and battery materials, supporting over 8,000 construction jobs and more than 4,000 permanent positions.
These projects will focus on enhancing US battery manufacturing capacity, refining critical minerals, and recycling existing battery components, ensuring a more sustainable and resilient supply chain.
The portfolio of projects will be managed by the DOE’s Office of Manufacturing and Energy Supply Chains (MESC).
Their objective is to upgrade existing facilities and build new ones for battery-grade minerals, components, and recycling, which are crucial to supporting America’s energy independence and security.
Strengthening energy independence and competitiveness
Batteries are a cornerstone of the US energy grid and are critical for powering homes, businesses, and electric vehicles (EVs).
The US has prioritised the development of a robust domestic supply chain to ensure that the nation is less reliant on foreign imports.
This effort is part of a broader clean energy strategy aimed at making the nation more competitive in global markets while supporting a transition to cleaner energy.
“By positioning the US at the forefront of advanced battery manufacturing, we are creating high-paying jobs and strengthening our global economic leadership and domestic energy security, all while supporting the clean energy transition,” said US Secretary of Energy Jennifer Granholm.
Driving investment in EV supply chains
The US Government has encouraged over $120bn in private sector investments in the EV supply chain.
The DOE’s battery manufacturing initiative is a critical component of this effort, helping the US onshore and ‘friend-shore’ key technologies with the help of international allies and partners.
Comprehensive projects across the battery supply chain
The 25 selected projects cover all aspects of the battery supply chain, from raw material extraction to manufacturing and recycling.
This initiative aims to build and expand facilities to process critical minerals such as lithium, graphite, and manganese, all of which are essential components in battery production.
The projects will also explore next-generation battery technologies, ensuring the US stays ahead in the global market.
The investments aim to foster a diversified battery portfolio, enhancing the nation’s ability to process and manufacture various battery chemistries.
This diversity ensures the US has a reliable and adaptable energy supply chain capable of meeting future demand for batteries across a range of industries.
Employment opportunities and economic benefits
In addition to advancing battery technology, this investment will have a substantial impact on the US workforce.
More than half of the selected projects have signed Project Labor Agreements, ensuring that the jobs created are well-paying, union positions.
Partnerships with labour organisations, such as the North America’s Building Trades Unions (NABTU) and the International Brotherhood of Electrical Workers (IBEW), underscore the US’ commitment to improving job quality and providing strong economic support to local communities.
By driving the growth of US battery manufacturing, these projects will not only bolster the clean energy sector but also provide long-term economic benefits by fostering innovation and job creation across the nation.
