The U.S. Department of Energy (DOE) said on Monday it would spend more than $3 billion in infrastructure funding to fund electric vehicle (EV) battery making.
What Happened: DOE will allocate the funds from the $1 trillion infrastructure bill that President Joe Biden signed last year.
The funding will focus on making more batteries and components in America, boosting domestic supply chains, creating new, retrofitted, and expanded commercial facilities as well as manufacturing demonstrations and battery recycling.
The DoE also announced a separate $60 million to support second-life applications for batteries once used to power EVs.
See Also: Joe Biden Gives Himself A Pat On The Back As GM Announces $7B Michigan EV Investment
Why It Matters: Biden has set a target for half of the vehicles sold in the U.S. to be electric by 2030. The U.S. administration had last year committed to cutting its greenhouse gas emissions by up to 52% by 2030.
$Tesla(TSLA.US)$ currently leads the electric vehicle market with the aim to sell about 1.5 million vehicles this year. In comparison, legacy rivals $General Motors(GM.US)$, $Ford Motor(F.US)$ and others are just getting started and have set aside billions of dollars to make the switch.
Price Action: Tesla closed 3.7% higher at $902.9 on Monday.