WASHINGTON — The U.S. Department of Energy on Wednesday announced $2.8 billion in funding across 12 states for electric vehicle battery production. None of the projects — most of which focus on battery mineral processing or component manufacturing — are in Michigan, which remains the largest auto-producing state in the nation.
When asked why that is, DOE officials who spoke on the condition of anonymity said the reason is twofold: There was a rush to investment in battery cell manufacturing after the passage of the Inflation Reduction Act, which reduced the need for federal funding for that stage.
And secondly, the agency wanted to select projects located near the raw material supply or near their customers. Michigan's Upper Peninsula is home to the only nickel mine in the U.S., one of the crucial components of EV batteries.
