The U.S. also announced awards totaling $2.8 billion to about 20 companies in more than 10 states to help expand domestic manufacturing of batteries for electric vehicles and the electrical grid. The money will go to projects that process lithium, graphite and other battery materials, manufacture components and demonstrate new approaches, such as producing components from recycled materials. The projects will specialize in building up the supply of particular materials and components, with a goal of lowering U.S. battery manufacturers’ reliance on foreign supply chains.

Assembling the battery cells that are embedded in vehicles is only one part of a process that typically involves multiple companies and can be geographically dispersed across continents. In the first step, mining companies extract raw materials such as lithium, nickel and other minerals, which have risen in value as demand for green energy grows. Then, other companies—often in other countries—process the minerals. Next, other specialized companies build components such as anodes, cathodes, separators and electrolytes. A fourth step involves the production of battery cells that house the components, including electronics and sensors that help manage a battery. These specialized companies that make components such as anodes and cathodes are crucial to the industry’s growth in the U.S.