Albemarle & SWA Benefit From $3bn US Battery Production Cash

The Biden-Harris administration has announced a $3 billion investment to boost America's battery production capabilities, with mining companies among the biggest beneficiaries.

The funding will strengthen domestic supply chains for electric vehicle (EV) batteries and energy storage systems.

The US Department of Energy (DOE), responsible for advancing energy technology and promoting energy security, will distribute the funds among 25 projects across 14 states. This investment is part of a broader $16 billion initiative to build America's battery industry.

Albemarle, which is one of the two companies involved in lithium extraction in Chile's Atacama salt flats will get $67 million to retrofit a plan near Charlotte, North Carolina, to produce commercial grade anode for next-gen EV batteries. Albemarle is an American specialty chemicals manufacturing company that operates three divisions: lithium, bromine specialties and catalysts.

The largest awards are going to Canadian company SWA Lithium and Texas-based TerraVolta Resources. Both companies will get $225 million each to produce EV battery raw materials.

SWA's project will be located in West Arkansas where it is expected to produce up to 45,000 tonnes of lithium carbonate with a minimum two-decade lifespan.

The funding will support various aspects of battery production, including solid-state batteries, recycling, silicon-anode production, and lithium iron phosphate (LFP) batteries. Solid-state batteries are a new technology that promises improved safety and energy density compared to traditional lithium-ion batteries.

Silicon-anode production refers to the manufacturing of battery anodes using silicon, which can potentially increase battery capacity. LFP batteries are a type of lithium-ion battery known for their stability and lower cost.

John Podesta, Senior Advisor to President Biden for International Climate Policy, adds: "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."

Department of Energy invests in critical mineral processing

The selected projects span strategic segments across the supply chain, building and expanding commercial-scale facilities to extract and recycle critical minerals. These include lithium, graphite, and manganese, which are essential for battery production.

Lithium is a key component in most rechargeable batteries, while graphite is used in battery anodes. Manganese is utilised in various battery chemistries to improve performance and reduce costs.

The DOE's investment will also support the manufacture of battery components such as electrolyte salts, solid-state electrolytes, and polymers for separators. These components are crucial for the functionality and safety of batteries.

Ali Zaidi, White House National Climate Advisor, reveals, "Today's game-changing announcement is helping support the technologies that we need in the market today, the components that we will need in the near future, and the innovative technologies we need to advance our vision for a circular domestic battery supply chain."

Job creation and community impact of battery projects

The selected projects are expected to generate over 8,000 construction jobs and more than 4,000 operating jobs. This boost in employment aligns with the administration's goal of creating high-paying jobs in the clean energy sector.

More than half of the selected projects have committed to or already signed a Project Labor Agreement. These agreements typically set terms and conditions for employment on large construction projects.

Union partners represented across the projects include North America's Building Trades Unions (NABTU), the International Brotherhood of Electrical Workers (IBEW), and the United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada (UA).

Nearly 90% of the selected projects are located in or adjacent to disadvantaged communities. This allocation aligns with President Biden's Justice40 Initiative, which aims to direct 40% of certain federal investments to communities marginalised by underinvestment and overburdened by pollution.

Secretary Granholm concludes, "By positioning the US at the forefront of advanced battery manufacturing, we are creating high-paying jobs and strengthening our global economic leadership and domestic energy security, all while supporting the clean energy transition."