Biden unveils a $3 billion plan to increase the production of batteries for electric vehicles

On Monday, the Biden administration said it would launch a $3.1 billion plan to increase local battery production to transition the country from gas-powered cars to electric vehicles.

Electrification of the transport sector will be critical to mitigating human-caused climate change. The transportation part is one of the most significant contributors to greenhouse gas emissions in the US, accounting for about a third of annual emissions.

According to the Ministry of Energy, the funds are intended to support grants for the construction, conversion, or expansion of battery production and battery components and the construction of a battery recycling plant. The gift is funded by President Joe Biden's $1 trillion bipartisan infrastructure bill, which includes more than $7 billion to strengthen the nation's battery supply chain.

The move came after the president cited the Defense Manufacturing Act in April to encourage domestic production of minerals needed to make electric vehicle batteries and long-term energy storage. The procurement could help the company secure federal funding for feasibility studies for projects that mine electric vehicle production materials such as lithium, nickel, cobalt, graphite, and manganese.

"This American-made battery will help reduce emissions and create opportunity across the country," White House national climate adviser Gina McCarthy told reporters Monday.

The White House, which has ready a goal of achieving 50% of EV sales by 2030, is also working to making a nationwide network of EV charging stations and tax incentives for consumers who buy EVs. The government has also pledged to replace the federal fleet of 600,000 cars and trucks with electricity by 2035.

The United States is the 3rd-largest market for electric vehicles after China and Europe. However, according to market research firm Canalys, only 4% of new cars sold in the United States last year were electric cars.

"By positioning the United States at the forefront and center of meeting the growing demand for advanced batteries, we are increasing our competitiveness and electrifying our transportation systems," US Secretary of Energy Jennifer M. Granholm tell in a statement Monday.