The Biden administration is providing $2.8 billion in federal grants to 20 companies involved in producing electric vehicle batteries, the White House announced Wednesday. Funding for the grants was provided in the $1.2 trillion Infrastructure Investment and Jobs Act that President Joe Biden signed into law last November.
The grants will focus on the supply chain of materials needed to produce electric vehicles, with an emphasis on developing domestic sources and processing capabilities for key materials including lithium, graphite and nickel. China and other foreign producers currently dominate the supply of many critical components used in electric vehicles.
A funded project is to build the first large-scale commercial lithium electrolyte salt production facility in the United States, with the goal of producing enough lithium for 2 million electric vehicles a year, the Department of Electricity said. ‘Energy. (For more details on funded projects, see this White House fact sheet.)
“Producing advanced batteries and components here at home will accelerate the transition from fossil fuels to meet the strong demand for electric vehicles, creating more well-paying jobs across the country,” the Energy Secretary said. Jennifer Granholm, in a press release.
Fossil fuels still in the spotlight: Biden responded to more immediate energy concerns by releasing 15 million barrels of oil from the US strategic reserve. The move, which complements a drawdown of 180 million barrels the president authorized earlier this year, comes after a group of oil-producing nations led by Saudi Arabia announced production cuts of up to 2 million barrels. barrels a day to drive up prices – and ahead of a crucial midterm election in which voters are expressing concerns about rising prices for all kinds of essentials, including gasoline.
In remarks delivered at the White House, Biden pointed to the substantial drop in fuel costs since the summer. “Let me repeat: Gas prices have come down and they are still going down,” he said. “But they’re not falling fast enough.”
Gasoline prices are still higher than many consumers — and the White House — would like. While the average price per gallon of gasoline fell to $3.85 from a high of $5 in June, it is still well above the pandemic-influenced level of $2.40 per gallon in place during the Biden’s inauguration.
The withdrawal leaves the U.S. strategic reserve oil supply at about 400 million barrels, the lowest level in nearly 40 years. The administration says it will start filling the reserve when oil prices fall below about $70 a barrel, or $15 lower than the current price.
Biden denied the move was politically motivated, but his partisan critics raised questions about the timing of the release. “Our oil reserves don’t exist to win midterm elections,” Republican Senator Marco Rubio of Florida said Tuesday. “They exist to help this country in an emergency or in the middle of a storm.”
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