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US announces $192mn fund to advance battery recycling

21/6/2023

News

Graphic of EV being charged in front of city skyline Photo: Adobe Stock
Key battery stakeholders will be awarded $60mn to address critical needs for the next phase of widescale EV commercialisation

Photo: Adobe Stock

The US Department of Energy (DOE) has awarded $192mn in funding for a number of battery recycling initiatives.

The DOE will award $125mn to the Consumer Electronics Battery Recycling, Reprocessing and Battery Collection fund to develop and implement education and/or behaviour change campaigns to increase participation by consumers in existing battery recycling programmes; improve the economics of recycling consumer electronics batteries to spur greater market demand for battery recycling; and assist states and local governments in establishing or enhancing battery collection, recycling and reprocessing programmes.

 

A further $60mn will be awarded to convene major manufacturers of electric vehicles (EVs) in the US, universities, National Laboratory partners, mineral and material suppliers, and other key battery stakeholders to address critical battery needs for the next phase of widescale EV commercialisation. The consortium seeks to advance battery R&D and to further develop a domestic battery supply chain and recycling capabilities.

 

The Battery Recycling Prize will also be awarded $7.4mn to incentivise the development of solutions that meet the overall Battery Recycling Prize goal. The Battery Recycling Prize incentivises US entrepreneurs to develop and demonstrate technologies that, when scaled, have the potential to capture 90% of all discarded or spent lithium-based batteries in the US for recovery of key materials for re-introduction into the supply chain.

 

The announcement supports the Biden-Harris Administration’s goal to have EVs make up half of all vehicle sales in the US by 2030. As of April 2023, more than 3.6mn plug-in EVs have been sold in the US, with more than half of those sold since President Biden took office. Battery costs have fallen more than 90% since 2008, and energy density and performance have increased.

 

Equitably growing the solar workforce
The DOE has also announced a $13.5mn programme funding 12 projects (spanning 13 states) to launch training partnerships that expand the solar energy workforce in underserved and underrepresented communities. The selectees include partners from industry, tribal organisations, unions, community colleges, and state and local governments.

 

According to the 2022 US Energy and Employment Report, the solar industry comprises over 330,000 employees and added 17,200 new jobs in the US in 2021 – an increase of 5.2%. The report also found that while the solar industry is more diverse than some other energy industries, the overall energy workforce lags in Hispanic (17%), Black (8%), and Indigenous worker (1%) representation.

 

The DOE expects that the industry will need to grow to between 500,000 and 1,500,000 workers by 2035 to achieve the Biden-Harris Administration’s decarbonisation goals. These jobs should be accessible to workers from all backgrounds, provide competitive wages and benefits, and offer opportunities for union membership, it says.

 

US-made clean tech cheaper than imports
Meanwhile, US-made wind and solar components are now cheaper than imports, according to a new study.

 

The report, from Dartmouth and Princeton researchers, examines the estimated impact the Inflation Reduction Act (IRA) will have on the US wind and solar industries. Specifically, the report analyses the impacts of the IRA’s 45X Advanced Manufacturing Production Tax Credit (45X MPTC), as well as the clean electricity production and investment tax credits.

 

45X MPTC provides tax credits for each US-made clean energy component, such as the PV module and some of its parts, batteries, and certain critical minerals. Manufacturers can either opt for a direct payment from the IRS or apply it as a credit to taxes owed.

 

The researchers found that as a result of the 45X MPTC alone, the cost of solar panels both assembled in the US and made from 100% US-made components are now 30% cheaper than imported solar panels. US-made onshore and offshore wind components such as towers, turbine blades, and nacelles will also be cheaper than imported components for the first time.

 

In order to receive the full clean electricity tax credits, developers have to pay workers a prevailing wage and use a certain percentage of registered apprentices. If they meet this requirement, the cost of producing solar or onshore wind is forecast to fall more than 60% (and offshore wind falling 20%), according to the report.

 

As a result, researchers claim an additional four million solar and wind jobs could be created.