Monday, June 24, 2024
NewsUnited States: $3.16 Billion to Incentivise Local EV Battery Production

United States: $3.16 Billion to Incentivise Local EV Battery Production

The American government has pledged to invest $3.16 billion to fund EV battery production.

  • The Biden Administration wants to make the US a global leader in EV production

  • This money comes from a $1 trillion infrastructure plan

  • This is also part of the government’s plan to make the US more energy independent

The American government has been pushing electric vehicles more than ever in the last few months and it has now announced a $3.16 billion investment specifically in EV battery manufacturing.

This measure is expected to be a solution to the current shortage of batteries that is caused by the ongoing semi-conductor shortage.

Indeed, despite the government pushing for more electric vehicle sales, automakers are struggling to meet the demand due to a short supply of components, mainly batteries.

The money in this deal will be given to automakers in the form of grants to be used for the construction of new battery construction facilities. The hope is that these plants will make more batteries available to automakers, but also create more jobs in the country.

Another advantage to American-made batteries is that their assembly process is subject to strict environmental norms that are set by the EPA, thus helping reduce their ecological footprint when compared with batteries produced in third-world countries, where regulation is much more permissive.

Another goal the Biden administration wants to achieve with this spending plan is to make the United States more energy independent, something that has become a hot talking point since the Russian invasion of Ukraine.

According to the Secretary of Energy, this plan will help make the US a global leader in EV production and electrification solutions.

In order to help electrify the roads of America quicker, the federal government will replace its fleet vehicles by EVs. By the end of the decade, the goal is to have half of all the vehicles used by government employees be powered by a battery.

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