Key takeaways: 

• On Monday, the Biden administration declared it would start a $3.1 billion plan to increase domestic manufacturing of batteries in a broader action to shift the nation away from gas-powered cars to electric cars.
• The budget will help grants sought for building, retooling, or expanding manufacturing of batteries and battery features and establishing battery recycling facilities.
• The grants will be financed through President Joe Biden’s $1 trillion bipartisan infrastructure rule, which has almost $7 billion to support the nation’s battery supply chain.

On Monday, the Biden administration declared it would start a $3.1 billion plan to expand domestic manufacturing of batteries in a broader action to shift the nation away from gas-powered vehicles to electric vehicles.

The electrification of the transportation sector will be required to mitigate human-caused weather change. 

The transportation sector is one of the most significant contributors to U.S. greenhouse gas emissions, representing approximately one-third of emissions each year.

According to the Department of Energy, the budget will support grants to build, retool, or expand the production of batteries and battery components and establish battery recycling facilities. The grants will be financed through President Joe Biden’s $1 trillion bipartisan infrastructure law, which has almost $7 billion to bolster the country’s battery supply chain.

In April, the move came after the president summoned the Defense Production Act to boost the domestic production of minerals needed to make EV batteries and long-term energy storage. That ruling could help firms get federal funding for feasibility studies on projects that drag materials for EV manufacture, such as lithium, nickel, cobalt, graphite, and manganese.