DOE Announces Policies to Boost Domestic Advanced Battery Supply Chain

The Department of Energy has announced efforts to strengthen U.S. production of advanced batteries and reduce reliance on imports.

The United States exposes itself to supply chain vulnerabilities by heavily relying on imports of advanced lithium-based batteries, which the government expects to play a role in advancing the Biden administration’s decarbonization goals. DOE added that advanced batteries are needed to support the projected increase in demand for electric vehicles and stationary grid storage.

“We’re going to need a significant increase in battery production to supercharge America’s clean energy future, which means we urgently need to build up our capacity to research, develop, manufacture, and market batteries right here at home,” said DOE Secretary Jennifer Granholm.

In February, President Joe Biden issued an “Executive Order on America’s Supply Chain” directing DOE to identify risks in the supply chain for high-capacity batteries and to offer policy recommendations.

For its first line of effort, DOE announced a new policy requiring federally funded innovations in advanced batteries to be predominantly manufactured in the United States.

DOE also announced a blueprint of the current state of the U.S. advanced battery supply chain, highlighting what key areas the government should invest in.

Granholm is scheduled on June 14 to present the “National Blueprint for Lithium Batteries 2021-2023” published by the Federal Consortium for Advanced Batteries.

The department’s Loan Programs Office published guidance on how vehicle battery makers can tap into the approximately $17 billion Advanced Technology Vehicles Manufacturing Loan Program.

DOE’s Federal Energy Management Program will also launch a government-wide evaluation of opportunities for battery storage to be deployed at federal sites.