The US Department of Energy has released a report which documents how the funds from the Recovery Act have been allocated so far in projects related to electric vehicles, how investments interact to stimulate both supply and demand for electric vehicles, as well as the progress so far and the future expectations in terms of advancing electromobility in the US.

The US Department of Energy (DOE) is investing more than $5 billion under the American Recovery and Reinvestment Act and its Advanced Technology Vehicle Manufacturing (ATVM) Loan Program to support the development, manufacturing, and deployment of batteries, components, vehicles, and chargers necessary to put millions of electric vehicles (EVs) on the streets of America.

The report "Recovery Act Investments: Transforming America's Transportation Sector" provides an inventory of how public funds have been spent so far to stimulate both supply and demand for EVs:

• 26 out of 30 battery and component manufacturing plants have started construction: these encompass 9 battery manufacturing project of which 4 will be operational by the end of 2010; 11 battery component manufacturing facilities, including the production of separators; 10 electric drive component manufacturing projects, including the production of power electronics.

• 8 innovative demonstration projects, representing the world’s largest EV demonstration to date: by the end of 2013, the demonstration projects will result to the deployment of 13,000 grid-connected vehicles and 20,000 charging stations.

• More than 20 breakthrough research projects to support potential game-changing technologies: supported research projects are focused on enabling technologies that could go beyond today’s best lithium-ion chemistries, including semi-solid flow batteries, ultracapacitors and “all-electron” batteries.

What the investments are expected to achieve by 2015

These investments will drive down EV costs and hence expand the US market. For example they are expected to:

• Bring down battery costs by nearly 70%: DOE expects battery costs to drop by 50% between 2009 and 2013 and nearly 70% by 2015. I.e. a car with a 100 mile range which required a battery that cost more than $33,000 in 2009 will require a comparable 100 mile range battery that is expected to cost only $16,000 in 2013 and $10,000 in 2015.

• Increase the US capacity to produce 40% of the world’s advanced vehicle batteries: Thanks in part to the Recovery Act, 30 factories will be operational in the US by 2012 that will have the capacity to produce 20% of the world’s advanced vehicle batteries. By 2015, this share is expected to grow to 40%. This compares to only two factories manufacturing advanced vehicle batteries in the US in 2009, representing less than 2% of the world production.

• Reduce battery weight by 33%: Through the support of projects on reducing battery weight and increasing their energy density, DOE expects the typical weight of an EV battery to decline by 33% between 2009 and 2015.

• Increase battery durability to 14 years: DOE expects that within the next years, US battery manufacturers will be able to produce batteries that last up to 14 years, enhancing consumer confidence in EVs and reducing waste.