Battery Industry Gets $3B Investment from Federal Government

The Department of Energy has announced more than $3 billion for 25 projects across 14 states to boost the domestic production of advanced batteries and battery materials nationwide. This is part of the Biden-Harris 'Investing in America' agenda.

The selected projects are projected to support 8,000-plus construction jobs and more than 4,000 operating jobs. Administered by DOE’s Office of Manufacturing and Energy Supply Chains (MESC), the selected projects will retrofit, expand, and build new domestic facilities for battery-grade processed critical minerals, battery components, battery manufacturing, and recycling.

The Selectees:

"By positioning the US at the forefront of advanced battery manufacturing, we are creating high-paying jobs and strengthening our global economic leadership and domestic energy security, all while supporting the clean energy transition," said US Secretary of Energy Jennifer M. Granholm.

Through grants and loans, DOE is developing a diversified portfolio of projects for a durable and secure battery manufacturing supply chain for America. The Investing in America agenda will generate a $16 billion total investment for battery manufacturing and recycling through the Battery Materials Processing and Battery Manufacturing and Recycling Program. 

The selected projects include segments across the supply chain, building, and commercial-scale facilities to extract and recycle critical minerals including lithium, graphite, and manganese, as well as to manufacture components. The components represent essential building blocks of the battery supply chain — such as electrolyte salts, solid state electrolytes, polymers for separators, cathode and anode materials — that are critical to onshore a robust and reliable energy supply chain, the DOE stated. The projects also cover traditional and next-generation lithium-ion chemistries, and non-lithium-ion technologies, to ensure the US has a portfolio of domestic battery technologies that can strengthen the overall energy security.

Of the 25 projects, more than half have committed to or already have signed a Project Labor Agreement commitment, and 10 have an agreement with labor or a neutrality pledge. 

Nearly 90% of these projects are located in or adjacent to disadvantaged communities.

 This round of investment builds off of a previous round of funding in which DOE awarded $1.82 billion to 14 projects. The first round of awardees will build and expand commercial-scale facilities to extract lithium, graphite, and other battery materials, and battery component manufacturing. The first round of funds also supports demonstration of new approaches to manufacturing components from recycled materials. Many of the facilities are already under construction and one is currently operational.