Biden Administration to Provide 4 Trillion Won Support for US Electric Vehicle Battery Production

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The Joe Biden administration announced on the 2nd (local time) that it will provide $3.16 billion (approximately 4 trillion KRW) to support the development of the domestic electric vehicle battery industry.

According to reports from CNBC and others, the Biden administration stated that under the Infrastructure Law passed last November, $3.1 billion will be used to support the construction of new automobile battery factories within the country or the conversion of existing factories into battery and parts plants. Separately, the Department of Energy will provide $60 million to support the recycling of electric vehicle used batteries.

The Infrastructure Law, passed by Congress last November, includes a budget of $1.2 trillion aimed at improving outdated physical infrastructure such as roads, bridges, water supply, and internet communication networks, as well as creating jobs. The Biden administration is pushing for the passage of a large-scale subsidy bill with the goal of replacing 50% of new cars in the United States with eco-friendly vehicles by 2030.

Along with this, the Biden administration is also making efforts to expand battery charging infrastructure. In March, it announced plans to invest $5 billion over five years to expand battery charging infrastructure. Major foreign media reported that the Biden administration is cooperating with Tesla, General Motors, Ford, and others for this purpose.