WASHINGTON, Oct 19 (Reuters) – The Biden administration said on Wednesday it is providing $2.8 billion in grants to boost U.S. production of electric car batteries and the minerals used to make them.
Albemarle Corp (ALB.N) It is among 20 manufacturing and processing companies that have received grants from the US Department of Energy to mine lithium, graphite and nickel domestically, build the first large-scale lithium processing plant in the US, build facilities to build cathodes and other battery parts, and expand battery recycling.
The grants, which will go to projects in at least 12 states, mark the latest push by the Biden administration to help reduce its reliance on China and other nations for the building blocks of the nation’s green energy revolution.
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“As the world transitions from a fossil fuel to a clean energy economy, we cannot turn dependence on oil from autocrats like (Russian President Vladimir) Putin into dependence on critical minerals from China,” he said. .
The financial recipients, first reported by Reuters, were selected by a White House steering committee and coordinated by the Energy Department with support from the Interior Department.
The funds are allocated to a range of companies, some of which may finance the projects themselves, while others will see the grants as financial assistance to further expand their US plans. The funding does nothing to ease the permitting problems faced by some in the mining industry.
Albemarle is set to receive $149.7 million to build a facility to lightly process lithium-bearing rock from a mine it is trying to reopen in North Carolina. This facility will then feed a separate plant from the company in the southeastern United States said in June will produce as much lithium for electric batteries as the entire company produces today.
Albemarle, which also produces lithium in Australia and Chile, said the grant would “speed up lithium processing and reduce greenhouse gas emissions from transporting raw minerals over long distances.”
Piedmont Lithium Inc (PLL.O) it receives 141.7 million dollars for its construction lithium refinery In Tennessee, the company will first process source metal Quebec and Ghana. He faced Piedmont’s plans to build a lithium mine in North Carolina strong opposition.
Piedmont shares rose 7.5% on Wednesday after Reuters reported the financial award. Piedmont did not immediately respond to a request for comment.
Talon Metals Corp (TLO.TO) In a change of strategy for the company, it will receive $114.8 million to build a refinery in North Dakota. nickel supply contract With Tesla Inc (TSLA.O). Talon now aims to extract rock from a planned underground mine in Minnesota and ship it to a North Dakota processing facility that will be funded in part by the grant.
Talon said the grants “are a clear acknowledgment that the production of domestic nickel and other battery minerals is a national priority.”
Other grants include $316.2 million to privately held Ascend Elements to build a battery parts plant and $50 million to privately held Lilac Solutions Inc. for a demonstration plant. called direct lithium mining technologies$75 million to private equity firm Cirba Solutions and $219.8 million to Syrah Technologies LLC, a subsidiary of Syrah Resources Ltd., to expand an Ohio battery recycling facility (SYR.AX)Expanding graphite refinery in Louisiana.
BIDEN’S GOAL
By 2030, President Joe Biden wants 50% of all new cars sold in the United States to be electric or plug-in hybrid electric models, along with 500,000 new electric charging stations. He did not support phasing out sales of new gasoline vehicles by 2030.
The legislation, signed in August, sets resource requirements for Biden’s new strict battery component and $7,500 in consumer EV tax credits. A separate $1 trillion infrastructure law signed into law in November 2021 provides $7 billion to ensure US manufacturers have access to critical minerals and other essential components to make batteries. Wednesday’s announcement was linked to the 2021 legislation.
The White House said in a fact sheet that the United States and its allies do not produce enough of the critical minerals and materials used in EV batteries.
“China currently controls much of the critical mineral supply chain, and the lack of U.S. mining, processing, and recycling capacity could hinder the development and adoption of electric vehicles and leave the U.S. dependent on unreliable foreign supply chains,” the White House said.
In March, Biden invoked the Defense Production Act to support the production and processing of minerals and materials used in EV batteries.
The White House is launching an effort to strengthen critical mineral supply chains as automakers race to expand electric vehicle and battery production in the U.S., also called the American Battery Materials Initiative.
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Reporting by David Shepardson in Washington and Ernest Scheider in Houston; Additional reporting by Nandita Bose; Edited by Bernadette Baum, Matthew Lewis, and Paul Simao
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