The Joe Biden administration in the United States has provided an additional $3 billion (4 trillion won) in subsidies to domestic companies as part of efforts to reduce China’s global dominance in areas such as electric vehicle batteries.
This is a measure to increase domestic production of new batteries used in electric vehicles. Government budget support has been provided to 25 projects to be carried out in 14 states, including swing states such as Michigan and North Carolina.
The subsidy measure announced on the 20th is the second in a series of electric vehicle battery support measures included in the $1 trillion infrastructure bill that was passed by bipartisan agreement in 2021, including a dedicated budget.
The first installment was $1.8 billion for 14 projects. The combined size of the first and second installments is a reduction from the related support levels officially announced in October 2022, but several projects were withdrawn or rejected by officials during the long-term negotiation process.
Since taking office, Democratic President Biden’s administration has been promoting the production and sale of electric vehicles with the aim of slowing climate change in the United States and rebuilding American manufacturing at the same time.
Accordingly, companies that process battery raw materials such as lithium and graphite and companies that produce electric vehicle battery parts received subsidies.
Lael Brainard, White House economic adviser, emphasized on the day that the subsidy measure has resulted in nearly $35 billion in investment in key mineral resources and battery supply chains.
Major projects receiving grants that day include lithium mines in Nevada and North Carolina, battery plants in Michigan and Ohio, and rare earth and magnet production in California and Texas.
The economic adviser emphasized that with government subsidies, private sector investment in the sector has reached more than $100 billion.
In recent years, China has come to dominate the processing and refining markets for key minerals such as lithium, rare earths and gallium, and has also dominated battery production, making the United States and its allies very “vulnerable.”
The U.S. responded last week, with officials finalizing tariffs on Chinese imports of key minerals such as graphite for use in electric vehicles and grid storage.
In addition, under the Climate Change Response Act passed in 2022, the country actively supports domestic production of electric vehicles sold in the United States and places restrictions on products produced in “countries of concern,” such as China.
[워싱턴=AP/뉴시스]
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2024-09-20 13:34:05