U.S. Energy Department Announces $3 Billion Funding for Advanced Batteries

The U.S. Energy Department on Feb. 11 announced $2.91 billion funding to enhance manufacturing of innovative and advanced batteries, to expedite the growth of net-zero or emission-free future industries. The funding intends to support the entire value chain of battery manufacturing from refining and production to packaging and recycling facilities, and simultaneously create sustainable energy jobs. The funding is expected to be released within the next few months and will facilitate the nation’s ability to produce batteries and associated materials and enhance economic competitiveness and energy independence.

An executive order released in June 2021 called for a 100-day evaluation of the large battery supply chain. In the review, it was recommended that all critical materials should be produced and processed domestically. The 2021 Infrastructure Investment and Jobs Act provides about $7 billion to build up the nation’s battery supply chain, including sourcing materials for domestic manufacturing and producing critical minerals without new extractions.

In a market where lithium-ion batteries are expected to increase rapidly in the next ten years, the agency’s initiative is expected to prepare the country to meet market demands. The funding will build new production capacity and expand domestic facilities for battery recycling and the processing of allied materials and new battery manufacturing. The grant will further support research and development, and demonstration of reuse applications for batteries once retired from EVs.

The initiative aligns with the National Blueprint for Lithium Batteries, which was released last year by the Federal Consortium for Advanced Batteries. The blueprint outlines how to ensure sustainable domestic battery production and build a strong and secure domestic industry by 2030. The initiative is led by the U.S. Energy Department in collaboration with the Departments of Commerce, Defense, and State.

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