Biden administration allocates $3 billion to boost US battery production

The U.S. government is granting over $3 billion to support domestic battery production in 14 states, aiming to reduce reliance on China for electric vehicle materials.

Matthew Daly reports for The Associated Press.

In short:

• The funding supports 25 projects across states like Michigan, Ohio and Texas to expand EV battery production.
• This is part of a larger effort to build a U.S.-based supply chain for critical minerals used in batteries and clean energy technologies.
• The program falls under the bipartisan infrastructure law and seeks to create 8,000 construction and 4,000 permanent jobs.

Key quote:

“Today’s awards move us closer to achieving the administration’s goal of building an end-to-end supply chain for batteries and critical minerals here in America.”

— Lael Brainard, White House economic adviser.

Why this matters:

China dominates global battery production and mineral processing, putting the U.S. at a disadvantage. The Biden administration says expanding domestic manufacturing strengthens national security, reduces reliance on foreign entities, and accelerates clean energy transition.

Related: China’s electric buses lead a global revolution in electric vehicles