Biden grants $2.8 billion to produce minerals for tram batteries

The Joe Biden administration said on Wednesday it was providing $2.8 billion in incentives to increase production of electric vehicle batteries and the minerals used to make them in the United States, part of a bid to reduce China’s supply to the country.

Albemarle is among 20 manufacturing and processing companies that have received grants from the US Department of Energy to domestically mine lithium, graphite and nickel, build large-scale lithium processing facilities and produce cathodes and other components used in batteries. Battery recycling is also included in the measure.

The funds, which go to projects in at least 12 US states, mark the Biden administration’s latest effort to reduce US dependence on China and other nations in the “green” energy market.

“As the world transitions from a fossil fuel to a clean energy economy, we cannot trade dependence on oil from autocrats like (Russian President Vladimir) Putin for China’s dependence on critical minerals,” an official said. high-ranking US government officials.

Funding recipients were chosen by a White House steering committee and coordinated by the Department of Energy with support from the Department of the Interior.

The funds are being distributed to a number of companies, some of which can self-fund projects and others that will see donations as a financial lifeline to expand their plans. The funding, however, does nothing to alleviate the environmental licensing challenges faced by some groups in the mining sector.

Albemarle is due to receive $149.7 million to build a facility in North Carolina to process lithium-containing rocks from a mine it is trying to reopen. That facility will power a plant that the company said in June would alone produce as much lithium for electric vehicle batteries as the company’s current total output.

Piedmont Lithium is being awarded $141.7 million to build its own lithium processing facility in the state of Tennessee, where the company will initially process the metal from Canada and Ghana. Piedmont’s plans to build a lithium mine in North Carolina have faced stiff opposition.

Talon Metals will receive $114.8 million to build a processing plant in North Dakota in a change in strategy for the company, which has a nickel supply agreement with Tesla. The company said the resources are “a clear recognition that the production of domestic nickel and other battery minerals is a national priority.”