The U.S. Department of Energy (DOE) announced a $2.8 billion investment in battery binder manufacturing and supply chain development in October 2022.
Such investments are being made by the DOE for the binder in the battery market to address the U.S.' growing demand for advanced batteries for electric vehicles, renewable energy storage, and other applications.
According to the BIS Research report, the global binders in battery market is projected to reach $6.05 billion by 2031 from $2.26 billion in 2022, growing at a CAGR of 11.54% during the forecast period 2022-2031.
The investment by DOE will be split into two initiatives, i.e., $1.5 billion will be used to establish a domestic battery manufacturing industry under the banner of the "National Battery Manufacturing Initiative" while $1.3 billion will support the supply chain for critical materials used in batteries, such as lithium and cobalt.
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The U.S. Department of Energy (DOE) plans to distribute a total of $2.8 billion among 20 companies across 12 states to construct and enhance commercial-scale facilities under the National Battery Manufacturing Initiative.
The majority of crucial components for battery production, such as lithium, graphite, battery-grade nickel, electrolyte salt, electrode binder, and iron phosphate cathode material, are presently manufactured outside the U.S., and China has control over many of these critical supplies.
Aims of the National Battery Manufacturing Initiative
• To supply around 2 million electric vehicles each year while catering to the need to develop sufficient battery-grade lithium.
• To meet the requirements of approximately 1.2 million electric vehicles (EVs) annually by increasing battery-grade graphite production. Additionally, about 400,000 EVs' worth of battery-grade nickel production needs to be increased.
• To cater to 45% of the predicted domestic demand for EV battery binders in 2030 by developing an electrode binder facility. The first large-scale commercial production facility for lithium electrolyte salt (LiPF6) in the U.S. has been installed under this initiative.
• To supply anode materials for an estimated 600,000 EV batteries per year by establishing commercial-scale production facilities for silicon oxide.
DOE’s Supply Chain Strategy
The DOE has expressed its expectation of promptly pursuing future funding prospects to further address weaknesses and reinforce the domestic battery supply chain.
In June 2022, chemicals giant Solvay concluded the enhancement project for its polyvinylidene fluoride (PVDF) capacity at the Changshu facility in China. The corporation accelerated its production capacity for this high-performing polymer to satisfy the increasing customer demand for EV batteries, achieving its goal ahead of schedule.
The U.S. Department of Energy has awarded Solvay and Belgian Plastics a $178.2 million grant to support the Augusta site in bolstering the American electric vehicle battery supply chain in an effort to ensure the project's success.
Moreover, the expansion of binders in the battery market is projected to be propelled by the surge in electric vehicle sales and increased investment in battery installation for renewable energy.
Conclusion
By investing in the binder in the battery market, the DOE intends to create job opportunities, strengthen the country's position in the global battery market, and promote sustainable energy production. The industry's expansion is primarily driven by the rising emphasis on electric mobility by governments worldwide and private and public investments.
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