On February 25, 2021, President Biden signed Executive Order 14017, which ordered the administration to immediately launch a 100-day review to develop a strategic process to address vulnerabilities and opportunities in four supply chains. key products, including advanced batteries. The report on advanced batteries, led by the Department of Energy (DOE), and its recommendations have been submitted to the president, and today the Biden administration is announcing a set of immediate steps it will take to make the United States more competitive in the battery sector. market. The administration also recommends that Congress make critical investments to increase America’s ability to produce batteries and high-capacity products that use batteries, such as electric vehicles and stationary storage.
Advanced high capacity batteries play an essential role in 21sttechnologies of the century that are essential to the clean energy transition and national security capabilities around the world, from electric vehicles to stationary energy storage to defense applications. Demand for these products is expected to increase as supply chain constraints, geopolitical and economic competition, and other vulnerabilities also increase.
America today relies heavily on imported inputs for advanced batteries manufactured from abroad, exposing the country to supply chain vulnerabilities that threaten to disrupt the availability and cost of critical technologies that depend on them and the labor that makes them. As the global lithium battery market is expected to grow five to tenfold by 2030, it is imperative that the United States immediately invest in scaling up a secure and diverse supply chain for large capacity batteries here at home. This means seizing a critical opportunity to increase domestic battery manufacturing while investing to evolve the entire lithium battery supply chain, including the sustainable sourcing and processing of essential minerals used in the production of batteries until the collection and recycling of end-of-life batteries. .
Through close collaboration within the federal government, with U.S. industrial stakeholders, the research community, and international allies, the United States must develop a sustainable strategy that invests and scales our potential industrial strengths to meet this challenge. Success will ensure the country’s economic competitiveness, boost domestic manufacturing jobs for American workers, and position America to lead an emerging market by developing products that will be critical to our national security and our clean energy future.
Immediate actions to strengthen the national supply chain for advanced batteries:
- Strengthen U.S. manufacturing requirements in federally funded grants, cooperative agreements, and research and development (R&D) contracts. DOVE today announced a new policy to ensure that all innovations developed with taxpayer dollars under the DOE’s science and energy programs require award winners to largely manufacture these products in the United States, thereby creating well-paid national jobs. The DOE will implement these actions through an Exceptional Circumstance Determination under the Bayh-Dole Act, which will apply to all DOE science and energy programs, including funding that supports R&D for all advanced battery applications such as electric vehicles, stationary storage and other uses. This policy change will cover the more than $ 8 billion in funding for climate and energy innovation requested in the DOE’s FY22 budget, including more than $ 200 million to support research, development and demonstration of technology. batteries, ensuring that taxpayer dollars support manufacturing in the United States rather than exporting. Manufacturing jobs in the United States.
- Get stationary battery storage. In support of the administration’s goal of 100% clean electricity by 2035, the Federal Energy Management Program (FEMP) – housed in the DOE –is launching a federal government-wide energy storage opportunity diagnostic that will assess the current opportunity to deploy battery storage at federal sites. The FEMP will also launch a call for projects from federal sites interested in the deployment of energy storage projects, and will provide the technical assistance necessary for the realization of these projects. These actions build on actions taken earlier this year to mobilize $ 13 million in FEMP grants to assist federal facilities with energy conservation technologies (AFFECT) to unlock approximately $ 260 million or more in ‘investments in projects, including battery storage projects..
- Provide financing to the supply chain of advanced batteries for electric vehicles. DOE Loan Programs Office (LPO) published guidelines and published a fact sheet clarify the various uses of the Advanced Technology Vehicle Manufacturing (ATVM) loan program, which has a loan authorization of approximately $ 17 billion. The ATVM program may provide loans to manufacturers of advanced technology vehicle cells and battery packs for the retrofitting, expansion or establishment of such manufacturing facilities in the United States.
- Publish the National Master Plan for lithium batteries. the Federal Advanced Battery Consortium (FCAB), which is chaired by the DOE and includes other key federal agencies, is also committed to supporting the national advanced battery supply chain. Today the FCAB released the “National master plan for lithium batteriesTo codify the findings of the Advanced Battery Supply Chain EO report into a 10-year government plan to urgently develop a national lithium battery supply chain that creates fair jobs in the clean energy economy by America.
The Department of Energy report recommends that Congress:
- Catalyze private capital with new federal grant programs. Consistent with the United States Jobs Plan, we recommend that Congress establish a cost-shared grant program to support the manufacture of cells and battery packs in the United States. This model helps entrepreneurs who do not have the opportunity to access short-term tax credits, while ensuring taxpayers participate in the increase in investment. The production of large capacity battery cells in the United States is highly concentrated in a small number of companies. The establishment of a subsidy program for cell manufacturing could create high value-added manufacturing jobs, while increasing a more diverse and resilient industrial base.
- Electrify the country’s school bus fleet. We recommend that Congress provide a new federal grant to subsidize the additional upfront cost of new school buses, charging infrastructure and workforce training to accelerate the transition from diesel and provide certainty of funding for suppliers to expand their production lines . Early estimates indicate that $ 20 billion could support the transition of 20% of the existing school bus fleet to zero-emission technologies. About 95% of American school buses currently run on diesel. To date, limited federal funds have been available to support transitions to zero-emission technology despite the documented climate and health benefits of switching from diesel to battery-electric propulsion.
- Accelerate the electrification of the country’s public transport bus fleet. We recommend that Congress fund the Federal Transit Administration’s Low and No Emissions (“Lo-No”) subsidy program to accelerate the adoption of zero-emission mass transit vehicles by providing capital funding to transit agencies to pursue contracts and market certainty for manufacturers to build production capacity. Early estimates indicate that a $ 25 billion program could support the replacement of 20,000 mass transit vehicles, including buses, but also shuttles, vans and smaller cars operated by transit agencies in common.
- Provide consumer discounts and tax incentives to stimulate consumer adoption of electric vehicles. We recommend that Congress authorize new and expanded incentives to stimulate consumer adoption of U.S.-made electric vehicles. In addition, we recommend that Congress approve $ 5 billion to electrify the federal fleet with U.S.-made electric vehicles and $ 15 billion in infrastructure investments to build national charging infrastructure to facilitate transportation. nationwide adoption of electric vehicles.
- Invest in the production of high capacity batteries and products that use those batteries to support high paying union jobs. Tax credits, loans and grants available to businesses to produce in the United States must demand the creation of quality jobs with the right to organize for workers. We recommend that Congress pass the PRO law. And the new credits should include current salary requirements, similar to those included in the American Recovery and Reinvestment Act of 2009. Other standards that should be included are: (1) compulsory hiring percentages of registered apprenticeships and other labor or labor management training programs, (2) project labor requirements, community labor and local hiring, and (3) agreements neutrality of the employer.
- Develop strong environmental review authorization practices for the extraction of essential minerals. We recommend that Congress develop legislation to replace obsolete mining laws, including the General Mining Act (GML) of 1872 governing locatable minerals (including nickel) on federal lands, the Materials Disposal Act of 1947 to provide minerals found on federal lands; and the Mineral Land Lease Act of 1920 among others. These should be updated to have stricter environmental standards, up-to-date tax reforms, better enforcement, inspection and bonding requirements, and clear reclamation planning requirements.