The Investing in America agenda is poised to generate $16bn in total investment. Credit: mineral vision/Shutterstock.

The US Department of Energy (DOE) has allocated more than $3bn in funding for 25 projects across 14 states to enhance the nation’s battery manufacturing capabilities.

These projects are poised to boost production of battery materials, comply with the US electric vehicle (EV) tax credit rules and reduce reliance on China, reported Reuters.

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The investment, part of the Biden-Harris Administration’s Investing in America agenda, aims to boost domestic production of advanced batteries and materials, supporting more than 8,000 construction and 4,000 operational jobs.

Managed by the Office of Manufacturing and Energy Supply Chains (MESC), the projects will modernise and establish new facilities for processing critical minerals, manufacturing battery components and recycling.

The projects target key supply chain segments, from extracting and recycling critical minerals like lithium, graphite and manganese to manufacturing essential components such as electrolyte salts and cathode materials.

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More than half of the selected projects have committed to or signed a Project Labour Agreement, and ten have agreements with labour or a neutrality pledge.

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Via the Battery Materials Processing and Battery Manufacturing and Recycling Programme, the Investing in America agenda is poised to generate $16bn in total investment.

The DOE has earmarked $166m to South32 Hermosa in Patagonia, Arizona, for the mining of high-purity manganese sulphate monohydrate (HPMSM) and $166.1m for Element 25’s HPMSM project in Louisiana.

Some of the other selected projects include Urbix’s graphite processing facility and American Battery Technology Company’s commercial scale lithium-ion battery recycling facility.

President Biden senior advisor for international climate policy John Podesta said: “The Biden-Harris administration is using every available tool to onshore and friend-shore the supply chain for EVs and batteries, working with our allies and partners, for the benefit of our national security, our economy and our planet.

“Today’s battery manufacturing grants from DOE will boost America’s manufacturing base, create good-paying union jobs all over the country and help tackle the climate crisis.”

The Biden administration has pushed to bolster the domestic battery industry, with the DOE just last month announcing $63m in funding to help state and local governments expand battery recycling as well as make technologies such as advanced sensors and modelling more accessible to small and medium-sized manufacturers.