The Biden administration is taking concrete steps to reduce the U.S. electric vehicle (EV) industry's reliance on overseas supply chains and advance its "Made in America" agenda. Recently, President Joe Biden announced a substantial $2.8 billion funding initiative aimed at significantly enhancing domestic EV battery manufacturing capabilities. This move not only reinforces the implementation of the Bipartisan Infrastructure Law but also underscores the administration's commitment to reshaping the EV supply chain, reducing dependence on foreign sources—particularly China—and revitalizing American manufacturing.
Major Funding Injection to Reshape Battery Supply Chains
According to a White House announcement, the $2.8 billion in grants will be distributed to 20 companies, with individual awards ranging from $50 million to over $480 million. These funds will support the construction or expansion of facilities dedicated to producing EV batteries and related components, covering the entire supply chain—from raw material extraction and processing to battery manufacturing and recycling.
Notably, several recipients of the grants have established partnerships with major automakers such as Tesla, General Motors, and Mercedes-Benz. For instance, Sila Nanotechnologies received $100 million to build a facility in Moses Lake, Washington, which will supply anode materials for Mercedes-Benz's lithium-ion batteries. Talon Nickel, a subsidiary of Talon Metals, was awarded $114.8 million to develop a battery mineral processing plant to meet growing market demand. Talon Nickel has previously signed a nickel supply agreement with Tesla, and this funding will help expand its production capacity to fulfill contractual obligations.
Ascend Elements emerged as the largest beneficiary, securing two grants totaling over $480 million. The company specializes in recycling lithium-ion batteries to produce EV components and plans to use the funding to construct two new factories, significantly boosting its battery material production capabilities.
Comprehensive Strategy to Build a Self-Sufficient Supply Chain
In addition to direct financial support, the Biden administration launched the American Battery Materials Initiative, a government-wide effort to ensure reliable and sustainable supplies of critical minerals. This initiative will coordinate efforts across federal agencies to address challenges in securing raw materials for EV batteries.
During the funding announcement, President Biden emphasized that while China is not inherently more innovative in battery technology, its dominance in the market stems from unfair subsidies and trade practices. He stressed the need for the U.S. to take decisive action to level the playing field for domestic companies.
The administration has been actively promoting the localization of the EV supply chain. Earlier, it set a target for EVs to comprise 50% of new car sales by 2030 and introduced incentives for automakers to produce and source components in North America. In March, President Biden also invoked the Defense Production Act to bolster the production and processing of critical minerals.
The administration anticipates that demand for minerals like lithium and graphite could surge by up to 4,000% as EV adoption grows. This presents both a challenge and an opportunity—one that the U.S. aims to leverage to transition toward a net-zero carbon future and drive what could be the most significant economic transformation since the Industrial Revolution.
Detailed List of Funded Projects
Below is a list of projects funded under the Bipartisan Infrastructure Law:
| Company | Funding Amount (USD) | Project Purpose |
|---|---|---|
| Sila Nanotechnologies | 100,000,000 | Construction of anode materials facility for Mercedes-Benz |
| Talon Nickel (Talon Metals) | 114,800,000 | Battery mineral processing plant expansion |
| Ascend Elements | 480,000,000+ | Two new factories for recycled battery materials |
| Other Grantees (18 companies) | Varies | Diverse projects across the EV battery supply chain |