US awards $2.8B in grants for EV batteries in 12 states

WASHINGTON (AP) — The Biden administration on Wednesday awarded $2.8 billion in grants to boost domestic manufacturing of batteries for electric vehicles in 12 states. A total of 20 companies will receive grants for projects to extract and process lithium, graphite and other battery materials, manufacture components and strengthen U.S. supply of critical minerals, officials said. 

The announcement came as the administration seeks to boost production and sales of electric vehicles as a key part of President Joe Biden's strategy to slow climate change and build up U.S. manufacturing. Biden has vowed to boost U.S. production of lithium and other critical minerals, and the sweeping climate and health-care law passed in August includes several provisions to boost electric vehicles, including tax credits for EV buyers worth up to $7,500. 

“Right now 75% of battery manufacturing is done in China,'' Biden said.  

“By undercutting U.S. manufacturing with their unfair subsidies and trade practices, China seized a significant portion of the (battery) market,'' he added. "Today we’re stepping up to ... take it back — not all of it, but bold goals and actions to make sure we’re back in the (battery production) game in a big way.''