Advanced Energy Perspectives

The U.S. House of Representatives has spent the last three weeks marking up a series of legislative proposals that form the basis of the Build Back Better Act, the budget reconciliation bill put forward by the Democrats. Taken together, these proposals put into legislative text the elements of President Biden’s American Jobs Plan and American Families Plan that were not included in the bipartisan Infrastructure Investment and Jobs Act passed earlier this year. While, as in all legislation, there are elements that disappoint, AEE is impressed by the overall scope and scale of investments in advanced energy proposed. If enacted, the Build Back Better Act would put the U.S. on course to leading the world in advanced energy manufacturing, transportation electrification, and carbon emissions reductions, all while creating millions of jobs and investing in economic opportunity for American workers and families.

It’s Labor Day! It’s a day not only for backyard BBQs and final dips in the pool, but also, and more importantly, a day to recognize the hard-working yet under-appreciated folks who built America, and keep it humming. For us at AEE, it’s also a day to provide some new resources for growing jobs in the advanced energy industry.

In the 1920s the United States dominated the automobile market, led by Henry Ford and the Ford Motor Co. Before that, cars were difficult to make and expensive to buy. But thanks to Ford’s Model T and (then) newfangled assembly line production, the demand for cars became overwhelming, driving production into high gear, putting Americans to work with higher wages, and lowering the cost of these vehicles. This phenomenon occurs with most new technologies, from the desktop computer to the toaster. So, it is no surprise that we see the same phenomenon happening with electric vehicles (EVs) nearly 100 years later. Question is: Is the U.S. prepared to dominate the EV market the way it did in Henry Ford’s time?

As the United States transitions toward advanced energy and transportation, the nation (and indeed the world) will witness exponential growth in demand for energy storage. Lithium-ion batteries are key to this development, accounting for more than 99% of electric vehicle (EV) batteries and 90% of utility-scale storage in 2021. China currently dominates nearly every aspect of the lithium-ion supply chain, enjoying the ensuing economic and strategic advantages that come with it. For the U.S. to upend this dynamic and build a domestic storage industry, the first step is understanding the battery supply chain and identifying opportunities for disruption, from responsible sourcing and recycling of materials to support for domestic manufacturing. There is no time to lose.

Today, the United States faces a period of economic anxiety brought about by widening inequality, globalization, and technological transformation, made all the more acute by a global pandemic. This anxiety has heightened political appeals to prioritize domestic industry, combat economic adversaries, and protect American jobs. The advanced energy industry is uniquely positioned to help address this anxiety by creating middle-class jobs throughout the United States in a sector that’s poised for sustained and accelerating growth as the global economy transitions to clean, reliable, affordable resources. But it will take policy leadership to make the United States the arsenal of advanced energy prosperity. Here’s how.