U.S. Energy Department to Invest $192 Million in Battery Recycling, Sustainable Supply Chain Initiatives

The U.S. Energy Department on June 12 unveiled a funding package exceeding $192 million, aimed at advancing battery recycling for consumer products. This initiative includes the establishment of an advanced battery research and development consortium, as well as the continuation of the Lithium-Ion Battery Recycling Prize, which was initiated in 2019. This investment supports the goal of increasing the domestic supply chain for critical materials and aligns with the Biden administration’s objective of ensuring that electric vehicles (EVs) comprise half of all vehicle sales by 2030. The funding builds upon the significant investment of nearly $3 billion from  2021 Infrastructure Investment and Jobs Act, or IIJA, for EV and battery technologies.

The department’s $125 million Consumer Electronics Battery Recycling Funding Opportunity is a crucial part of the $7 billion authorized by the IIJA. The initiative aims to enhance battery recycling by funding education campaigns, improving economics, assisting states and local governments, and supporting retailers in battery collection and transportation. Administered by the department’s Vehicle Technologies Office and Office of Manufacturing and Energy Supply Chains, the funding supports the goals outlined in the Federal Consortium for Advanced Batteries’ National Blueprint for Lithium Batteries. Concept papers are due on Aug. 17, 2023, and full applications must be submitted by Nov. 29, 2023.

The advanced battery R&D Consortium funding opportunity provides up to $60 million to unite major U.S. electric vehicle manufacturers, universities, National Laboratories, and other stakeholders. Its objective is to address challenges related to materials, minerals, and battery chemistries for cost reduction and abundant resource utilization. The consortium aims to advance battery R&D aligned with EV industry needs, promote domestic supply chains and recycling capabilities, and support the transition to low-carbon transportation. Applications, due by Sep. 8, 2023, must include a community benefits plan emphasizing diversity, equity, and inclusion. In a recent move, the department’s Loan Programs Office made an announcement regarding a conditional commitment of an $850 million loan, which is intended to provide financial support for the construction of KORE Power Inc.’s advanced battery cell manufacturing facility in Buckeye, Arizona.

The Lithium-Ion Battery Recycling Prize, launched in 2019, has awarded $5.5 million for innovative battery recycling solutions. The department is now providing $7.4 million for a new Breakthrough Contest and Phase IV of the Prize. The contest encourages entrepreneurs to develop solutions aligned with the Prize’s goals, while Phase IV focuses on demonstrating the impact of these solutions in moving batteries from consumers to recyclers. The Prize aims to recover key materials from ninety percent of discarded lithium-based batteries for reintroduction into the U.S. supply chain.