As promised in President Biden’s bipartisan infrastructure deal, the U.S. Department of Energy (DOE) provides dates and partial breakdowns of grants totaling $2.9 billion to boost battery production in electric vehicle (EV) and energy storage markets .
The funding will be provided by the DOE branch of the Office of Energy Efficiency and Renewable Energy (EERE) and will be used for battery material refining and production plants, cell and battery pack manufacturing and recycling facilities.
It said that EERE has issued two Notices of Intent (NOI) to issue a Funding Opportunity Announcement (FOA) around April-May 2022.It added that the estimated execution period for each award is about three to four years.
The announcement is the culmination of years of U.S. desire to have more involvement in the battery supply chain.The vast majority of electric vehicle and battery energy storage system (BESS) batteries in most countries, including the United States, come from Asia, especially China.
The first FOA, the Bipartisan Infrastructure Act – Announcement of Financing Opportunities for Battery Materials Processing and Battery Manufacturing, will be the bulk of the funding of up to $2.8 billion.It sets minimum funding amounts for specific fields.The first three are in battery material processing:
– At least $100 million for a new commercial-scale battery materials processing facility in the U.S.
– At least $50 million for projects to retrofit, retrofit, or expand one or more eligible existing battery materials processing facilities located in the United States
– At least $50 million for demonstration projects in the U.S. for battery material processing
– At least $100 million for new commercial-scale advanced battery component manufacturing, advanced battery manufacturing, or recycling facilities
– At least $50 million for projects to retrofit, retrofit, or expand one or more eligible existing advanced battery component manufacturing, advanced battery manufacturing, and recycling facilities
– Demonstration projects for advanced battery component manufacturing, advanced battery manufacturing, and recycling of at least $50 million
A second, smaller FOA, the Bipartisan Infrastructure Act (BIL) Electric Vehicle Battery Recycling and Second Life Applications, will provide $40 million for “recycling processing and reintegration into the battery supply chain,” $20 million for the “second time” use of the Amplified Demonstration Project.
The $2.9 billion is one of several funding pledges in the act, including $20 billion through the Office of Clean Energy Demonstration, $5 billion for energy storage demonstration projects, and another $3 billion in grants for grid flexibility .
Energy-storage.news sources were unanimously positive about the November announcement, but all emphasized that the introduction of tax credits for energy storage investments would be a real game-changer for the industry.
The bipartisan infrastructure deal will provide a total of $62 billion in funding for the country’s push for a clean energy sector.
Post time: Feb-15-2022