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On the 15th of November the Biden-Harris Administration announced USD3.5 billion in funding to strengthen domestic battery manufacturing. The funding will be allocated under the administration’s 2021 Bipartisan Infrastructure Law. Additionally, following US-China climate envoy meetings in July and November 2023, the pair have reaffirmed commitments to jointly address the climate crisis.
Strengthening US Battery Manufacturing Capabilities
The 2021 Bipartisan Infrastructure Law was introduced to ease US inflationary pressures and strengthen supply chains. It directs USD1.2 trillion of federal government funds to transportation, energy, and climate infrastructure projects.
The newly announced funding will expand and establish new and retrofitted domestic battery facilities. It aims to increase processing of battery grade materials, battery precursor production, battery component production and, cell and pack manufacturing. The capital will be administered by the Department of Energy’s (DoE) Office of Manufacturing and Energy Supply Chains (MESC). The MESC is responsible for strengthening and securing manufacturing and energy supply chains required for the nation’s energy transition. This funding follows an initial phase of USD2.5 billion in 2021. The DOE awarded this capital to 15 projects that have generated USD5.8 billion worth of both public and private investment into the industry. For this second phase, the DOE is prioritising next generation battery technologies, and increasing US battery production capabilities. This comes in support of the Biden Administration’s efforts to reach a net-zero emissions economy by 2050 and EV sales targets of 50% by 2030.
US-China Climate Envoy Meetings
In relation to the announcement of new funding for the battery industry, the US department of state released a statement on Enhancing Cooperation to Address the Climate Crisis with China. Two key points included; the agreement to restart the U.S.-China Energy Efficiency Forum and cooperate over emission policies. The U.S.-China Energy Efficiency Forum will aim to deepen policy exchanges on energy-saving and carbon-reducing solutions in key areas including industry, transportation, and buildings. The forum will convene government, industry, academia and advocacy group representatives. Additionally, both countries intend to cooperate in promoting relevant policies and measures to enhance collaboration in controlling green-house-gas emissions and air pollutants.
Rho’s Evaluation
Public funding has…
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