US Allocates $3bn to Strengthen Domestic Battery Supply Chain

Department of Energy

The U.S. Department of Energy (DOE) has selected 25 projects across 14 states to receive over $3 billion aimed at boosting the domestic battery supply chain. This includes the production of batteries, critical components, and materials such as lithium, manganese, and graphite.

The DOE announced on Thursday that the funds will be used to "retrofit, expand, and build" manufacturing and recycling facilities throughout the United States. These projects will focus on various stages of battery production, including direct lithium extraction (DLE), production of cathode active materials (CAM), and the development of battery separators.

Key Investments in Lithium and Battery Recycling

More than $1 billion will be allocated to five major projects. Standard Lithium and Equinor's SWA Lithium joint venture, along with TerraVolta Resources, could each receive $225 million for DLE initiatives. Meanwhile, Cirba Solutions and Group14 Technologies have been earmarked $200 million each for lithium-ion battery recycling and silane production, respectively. Additionally, EnergySys Advanced Systems could receive $199 million to manufacture battery cells at its facility.

This funding will be distributed through the Office of Manufacturing and Energy Supply Chains (MESC) and is part of the Bipartisan Infrastructure Law. The final awards will be determined after negotiations between the DOE and applicants, along with environmental impact assessments for each project.

In October 2022, the DOE awarded $1.8 billion in the first round of funding for 14 battery materials processing and recycling projects under the MESC’s program.