Biden-Harris Administration Announces $3.5 Billion to Strengthen Domestic Battery Manufacturing

The U.S. Department of Energy (DOE) today announced an allocation of up to $3.5 billion from the Infrastructure Law to enhance domestic production of advanced batteries and battery materials. This funding, part of President Biden’s Investing in America agenda, aims to establish and expand domestic facilities for battery-grade processed critical minerals, battery precursor materials, battery components, and cell and pack manufacturing. The investment is managed by DOE’s Office of Manufacturing and Energy Supply Chains (MESC) and supports the Biden-Harris Administration’s goal of achieving a net-zero emissions economy by 2050.

U.S. Secretary of Energy Jennifer M. Granholm stated, “Positioning the United States front and center to meet the growing demand for advanced batteries is how we boost our global competitiveness, maintain and create good-paying jobs, and strengthen our clean energy economy. President Biden’s historic investments are giving the boost needed to build a robust domestic battery supply chain that is Made-in-America.”

The transition to a clean energy economy, which includes the increasing demand for electric vehicles (EVs) and stationary storage, is projected to expand the lithium battery market by five- to ten-fold by the end of the decade. This necessitates investment in the development of a resilient supply chain for high-capacity batteries, including non-lithium batteries.

This funding opportunity is the second phase of the $6 billion provided by the Bipartisan Infrastructure Law. The first phase saw the DOE award fifteen projects, catalyzing over $5.8 billion in public/private investment. The second phase aims to boost domestic battery manufacturing and supply chains to support the clean energy transition effectively.

The funding opportunity will prioritize next-generation technologies and battery chemistries, in addition to lithium-based technologies. Other focus areas include precursor production and manufacturing for specialized, non-light duty markets. The DOE is also seeking projects that will increase the separation of battery-grade critical materials, expand production facilities for cathode and anode materials production, and expand battery component manufacturing facilities.

The program’s focus areas will be updated approximately every six months to account for market and technology evolution, and investment selections will be made in consecutive rounds. Concept papers are due January 9, 2024, and full applications are due March 19, 2024.

MESC is tasked with strengthening and securing manufacturing and energy supply chains needed to modernize the nation’s energy infrastructure and support a clean and equitable energy transition.

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