US President Joe Biden remarks on climate change and the protection of national forests on Earth Day at Seard Park in Seattle, Washington, April 22, 2022.
Jonathan Ernst Reuters
The Biden administration said Monday it would launch a $ 3.1 billion plan to boost local battery production, in a broader effort to shift the country from gas-powered cars to electric vehicles.
Electrification of the transport sector will be crucial to mitigate man-made climate change. The transportation sector is one of the largest contributors to US greenhouse gas emissions, accounting for approximately one-third of annual emissions.
The funding will support grants aimed at building, retrofitting or expanding the production of batteries and battery components, as well as setting up battery recycling facilities, according to the energy ministry. The grant will be funded through President Joe Biden’s two-party $ 1 trillion infrastructure bill, which includes more than $ 7 billion to strengthen the country’s battery supply chain.
The move comes after the president cited the Defense Manufacturing Act in April to encourage domestic production of minerals needed for the production of batteries for electric vehicles and long-term energy storage. This procurement could help companies receive federal funding for feasibility studies for projects that extract materials for EV production, such as lithium, nickel, cobalt, graphite and manganese.
“These batteries, made in America, will help reduce emissions and create opportunities across the country,” National White House Climate Adviser Gina McCarthy told reporters Monday.
The White House, which has set a target of 50% of electric vehicle sales by 2030, is also working to build a national network of EV charging stations and create tax incentives for consumers who buy EVs. The administration also promised to replace its federal fleet of 600,000 cars and trucks with electricity by 2035.
The United States is the third largest market for electric vehicles in the world after China and Europe. Only 4% of new cars sold in the United States last year were electric, according to market research firm Canalys.
“Positioning the United States ahead and at the center of meeting the growing demand for advanced batteries is the way we increase our competitiveness and electrify our transportation system,” said US Energy Secretary Jennifer M. Granholm in a statement Monday.
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