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

Nov. 17, 2023
The U.S. is expected to invest in the capacity to develop a resilient supply chain for high-capacity batteries as the demand for EVs increases the lithium battery market

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.