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US Government Gives Grants Worth $2.8B to Build Up EV Batteries Supply Chain

us ev batteries supply chain

US Government gives grants worth $2.8B to build up EV batteries supply chain.

The United States is continuing to build its domestic EV battery supply chain. The Biden administration has awarded grants totaling $2.8 billion for developing electric vehicle (EV) battery manufacturing facilities in the United States, as the country works to reduce its reliance on Asia.

President Joe Biden has set a goal of electrifying half of all new vehicles sold by 2030. Demand for critical minerals critical for EV batteries is expected to skyrocket in the next decade due to increased EV sales, which Biden is calling “one of the most significant economic transitions since the Industrial Revolution.”

According to the US Department of Energy, the approved projects will eventually supply enough lithium to produce 2 million EVs, enough graphite to produce 1.2 million EVs, and enough nickel to produce 400,000 EVs per year. 

Albemarle (NYSE:ALB), Talon Metals (TSX:TLO) (OTCPK:TLOFF), and American Battery Technology Co (OTCQB:ABML) are among the companies that have received funding. Meanwhile, FE Battery Metals Corp. (CSE:FE) (OTCQB:FEMFD) and Sayona Mining Limited (OTCQB:SYAXF) are driving the electric future with their lithium mining projects.

FE Battery Metals (CSE:FE) (OTCQB:FEMFD) is a Canadian mineral exploration company with a focus on locating, acquiring, and investigating mineral prospects in North America for industrial, base, and precious metals.

On November 8, FE Battery Metals announced results from drill hole LC22-39 from the Phase 2 exploratory drill program at its 100% owned Augustus Lithium Property in Quebec, Canada. According to the results, drill hole LC21-39 intersected three lithium pegmatites, with the main 7.3 m wide pegmatite zone averaging 1.54% lithium oxide (Li2O) at 188.7m drilled depth.

The drill program is based on the historical and 2021 Phase 1 exploration data as well as the company’s surface trenching and sampling program results. Several historical drill hole collars were also located on the Property, which helped in the current program’s location and orientation of drill holes.

A B-20 drill rig is deployed for this work, which can drill up to a 1,000-meter-deep hole. To date a total of 42 drill holes with a cumulative core drilling of over 7,500 m has been completed on the Property.

In October, FE Battery Metals announced the results of drill holes LC21-33 to 37 at Augustus. Among the highlights of the results was drill hole LC21-35 intersecting an 11.20-meter-wide zone with 0.91% lithium oxide (Li2O) at 146 meters, including a 5 meter zone with 1.03% Li2O at 146 meters and 3.2 meter with 1% Li2O at 154 meters.

This drill hole also has a lower seven meters wide zone with 0.54% Li2O at 165 meters drilled depth and several other smaller intercepts with variable lithium grades.

The company also recently announced a corporate restructuring to spin off assets related to its current exploration properties located in Quebec and Ontario into a wholly-owned subsidiary. According to the company, each FE Battery Metals shareholder will receive one common share of Spinco for every post-consolidation share held.

FE Battery Metals also has completed a non-brokered private placement for gross proceeds of up to $1.5 million by issuing roughly 6.7 million shares at a price of $0.225.

Companies Are Advancing Critical Minerals Projects

Albemarle (NYSE:ALB) subsidiary, Albemarle Lithium UK Limited, has completed the $200 million acquisition of Guangxi Tianyuan New Energy Materials. In September 2021, a definitive agreement was announced to acquire Tianyuan.

Tianyuan’s operations include a lithium conversion plant with a designed annual conversion capacity of up to 25,000 metric tonnes LCE and the ability to produce battery-grade lithium carbonate and lithium hydroxide. 

Albermarle has received a nearly $150 million grant from the US Department of Energy. The grant funding is intended to cover a portion of the estimated cost of building a new commercial-scale lithium concentrator facility in the US at the company’s Kings Mountain, North Carolina.

READ the latest Batteries News shaping the battery market

US Government Gives Grants Worth $2.8B to Build Up EV Batteries Supply Chain, NEW YORK, November 8, 2022

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