DOE Announces $3.5B Grant to Boost Domestic Battery Manufacturing and Processing

As part of President Biden’s Investing in America agenda, the U.S. Department of Energy (DOE) has announced up to $3.5 billion from the Infrastructure Law to lift domestic production of advanced batteries and battery materials nationwide. The funding will also create new, retrofitted, and expanded domestic facilities for battery-grade processed critical minerals, battery precursor materials, battery components, and cell and pack manufacturing.

The investment will also prioritize retaining and creating good-paying union jobs in the manufacturing workforce and will be administered by the DOE’s Office of Manufacturing and Energy Supply Chains (MESC).

This funding supports the Biden-Harris Administration’s efforts to reach a net-zero emissions economy by 2050, have electric vehicles make up half of all new light-duty vehicle sales by 2030, and build a domestic supply chain.

The U.S. is expected to invest in the capacity to develop a resilient supply chain for high-capacity batteries, including non-lithium batteries, as the demand for electric vehicles and stationary storage is anticipated to increase the size of the lithium battery market by five to ten-fold by the end of 2030. 

The second phase of $6 billion in total provided by the Bipartisan Infrastructure Law will boost domestic battery manufacturing and supply chains to effectively support the clean energy transition by:

• Ensuring that the U.S. has a competitive battery materials processing industry to supply the North American battery supply chain.
• Expanding the capabilities of the U.S. in advanced battery manufacturing.
• Enhancing national security by reducing the reliance of the U.S. on critical minerals, battery materials, components, and technologies from foreign entities of concern.
• Advancing the domestic processing capacity of minerals necessary for battery materials and advanced batteries.
• Support the goal of 40% overall benefits of certain federal investments flowing to underserved and overburdened communities (in accordance with the Justice40 Initiative).
• Provide workforce opportunities to low- and moderate-income communities.

This phase will promote collective bargaining agreements and/or projects creating a high-quality, high-wage hourly production workforce through the community benefits plans.

The DOE is also working on next-generation technologies and battery chemistries, in addition to lithium-based technologies, which include precursor production and manufacturing for specialized, non-light-duty markets.

The DOE is requesting projects that are intended to increase the separation of battery-grade critical materials, expand production facilities for cathode and anode materials production, and expand battery component manufacturing facilities.