Biden hands out first EV battery metals funding to Albemarle, Piedmont and Talon among others  

Albemarle (NYSE: ALB), Piedmont Lithium (NASDAQ: PLL) and Talon Metals (TSX: TLO) are among the companies marked for US$2.8 billion in Biden administration funding announced this week to help the critical minerals industry meet electric vehicle and other green energy targets.  
 
The White House selected 20 U.S. manufacturers and processors across 12 states for some of the first green metals funding from the US$135 billion pool initially approved almost a year ago in the Bipartisan Infrastructure Act.  
 
The U.S. is among countries in the West that want to lessen dependency on China, Russia and other regimes like the Democratic Republic of Congo that control global supplies in key minerals or mineral processing facilities needed for transitions to sustainable energy and widespread modern tech gadgets.  
 
Charlotte, N.C.-based Albemarle gets US$149.7 million to build an initial processing facility for lithium it plans to mine locally. The mineral would be further processed at another of the company’s plants to reach electric vehicle battery grade, more than 99% pure. The company says it’s targeting annual output of 100,000 tonnes of lithium from what would be the largest plant in the U.S. The material would be enough to build some 1.6 million electric vehicles.  

The Tamarack nickel project is located in Minnesota, 210 km north of Minneapolis and 89 km west of Duluth. (Image courtesy of Talon Metals.)

“Expanding our U.S. footprint also increases the speed of lithium processing and reduces greenhouse gas emissions from long-distance transportation of raw minerals,” Albemarle chief executive officer Kent Masters said in a press release. “We hope this project spurs additional investment by others in the domestic EV battery supply chain, such as cathode manufacturers, battery makers, and auto manufacturers.” 
 
The funding was routed through the Department of Energy after a White House steering committee selected the companies with input from the Energy and Interior departments, the White House said. The funding is part of a wider government package to give incentives to buy electric vehicles, which has spurred companies themselves to invest US$100 billion in electric vehicles, their batteries and charging stations, the administration said.  
 
Also headquartered in North Carolina, Piedmont Lithium said it plans to use the US$141.7 million from the program to build a US$600-million processing plant in Tennessee for material mined in Quebec — at its 25%-owned North American Lithium project — and Ghana. It aims to produce 30,000 tonnes a year, doubling current U.S. output of lithium hydroxide.  
 
“This funding will enable us to accelerate detailed engineering and place orders for long-lead items,” Piedmont chief operating officer Patrick Brindle said in a press release.  
 
Piedmont has a contract to supply Tesla but has yet to secure permits for an US$840 million open pit mine in North Carolina due in 2026, according to Reuters. 
 
Talon Metal’s nickel unit in North Dakota is to receive US$114.8 million to build a processing plant for mineral mined in Minnesota, the company said.   
 
Some US$661 million in federal funding went to various battery, lithium and graphite projects by Ascend Elements, Lilac Solutions, Cirba Solutions and Syrah Resources (ASX: SYR).  
 
Biden wants half of vehicles sold in the U.S. by 2030 to be electric or hybrid plug-ins, able to charge at half a million new charging stations. But the domestic industry is constrained by low battery minerals production. Also, the administration set tough new requirements in August that US$7,500 EV buying incentives for consumers only apply to vehicles without components sourced in foreign countries such as China.  
 
“The lack of mining, processing, and recycling capacity in the U.S. could hinder electric vehicle development and adoption,” the White House said. “The projects will have positive impact on their own and also catalyze a whole U.S. industry in the critical phases of the battery supply chain.”