US Department Of Energy To Invest $3B in Battery Production

On Friday, the U.S. Department of Energy (DOE) announced over $3 billion for 25 projects in 14 states to boost domestic production of advanced batteries and materials.

Of the 25 selected projects, over half have committed to or signed a Project Labor Agreement, and 10 have agreements with labor or neutrality pledges.

Union partners include NABTU, Boilermakers, SMART, Carpenters, Operating Engineers, UFCW, IBEW, and the UA. These projects, once finalized, are expected to create over 8,000 construction jobs and 4,000 operating jobs.

This initiative supports the administration's clean energy strategy alongside a $120 billion private sector investment in the EV supply chain.

These projects, which are essential for the U.S. grid and transportation electrification, are expected to improve facilities for producing battery-grade materials, components, manufacturing, and recycling.

The DOE is leveraging grants and loans to build a resilient battery manufacturing supply chain for Americans. Through MESC, the Investing in America agenda will generate $16 billion for battery manufacturing and recycling via the Battery Materials Processing and Manufacturing Program.

U.S. Secretary of Energy Jennifer M. Granholm said, "We're in the midst of a manufacturing revival in the United States as the Biden-Harris Administration's Investing in America agenda continues to breathe new life into communities and local economies across the country,"

John Podesta, Senior Advisor to President Biden for International Climate Policy, stated, "Today's battery manufacturing grants from DOE will boost America's manufacturing base, create good-paying union jobs all over the country, and help tackle the climate crisis."

As per Reuters report, Albemarle Corporation ALB will receive $67 million for a project in North Carolina to produce commercial quantities of anode material for next-generation lithium-ion batteries.

In addition, the DOE plans to award Dow Inc. DOW $100 million to produce battery-grade carbonate solvents for lithium-ion battery electrolytes.

Also, Honeywell International Inc. HON is projected to attain $126.6 million to construct a commercial-scale facility in Louisiana for producing a key electrolyte salt essential for lithium batteries.

This month, Occidental Petroleum's OXY subsidiary, 1PointFive, disclosed that the U.S. Department of Energy's Office of Clean Energy Demonstrations (OCED) planned to provide up to $500 million to support the development of the South Texas Direct Air Capture (DAC) Hub.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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