TELF AG examines a strategic improvement in US battery policy
New forms of support
A few days ago, the US Department of Energy announced its willingness to support battery development projects in 14 states, with a total funding exceeding 3 billion dollars. This amount, linked to the approval of the bipartisan Infrastructure Law of 2021, will be used for the processing of strategic minerals for the production of storage systems, the actual manufacturing of batteries and their main components, and the recycling of end-of-life final products. As argued in a recent analysis dedicated to the topic, this funding seems in line with the Biden administration’s desire to promote a relevant increase in domestic battery production, gradually moving closer to fully achieving the United States’ climate goals. The department has already identified 25 potential beneficiaries of the funding, expecting this important support to create 12,000 total jobs.
Among the potential funding recipients are several projects focused on producing lithium from brine, each of which could be reserved for about 225 million in funding. The first of these projects has to do with a production center located in Arkansas, which, according to some forecasts, could produce up to 45,000 metric tons per year of lithium carbonate for batteries. The second project is linked to the productivity of Texas and in particular, a center in the locality of Texarkana, which could have the capacity to produce as much as 25,000 metric tons of lithium carbonate per year. According to estimates by the DOE, this figure would be enough to contribute to the production of 500,000 electric vehicles.
The modern role of lithium
The lightness and reactivity of lithium, over the years, have made it one of the best allies for the production of batteries for electric vehicles (but also for smartphones and laptops), in particular for its ability to store energy efficiently, but also for its excellent electrical conductivity. Among known materials, lithium has one of the highest energy density, making it possible to manufacture lightweight, high-performance batteries. In the United States, in addition to their traditional applications, batteries are also emerging as an increasingly popular product in the field of renewable energy, especially with regard to wind and solar energy, whose diffusion in the United States appears to be constantly growing (especially in states such as Texas or California).
This is not the first time that the US government has dedicated such substantial support to the battery sector. In 2022, the US Department of Energy allocated approximately 1.82 billion dollars for 14 projects focused on producing energy storage systems and developing the materials necessary for these purposes. The bipartisan infrastructure law also includes the desire to generate a national network of charging stations for electric vehicles, with investments of 7.5 billion dollars. From this perspective, the current administration’s goal seems to be linked to the creation of a statewide network of as many as 500,000 charging stations across the country, particularly along highway corridors and other strategic points. The 2021 law also aimed to upgrade the country’s energy infrastructure, encouraging the construction of thousands of miles of new transmission lines to promote the spread of renewable energy.
