US Continues Clean Energy Support With $3.5 Billion For Battery Manufacturing

As part of its Bipartisan Infrastructure Law, the Biden administration in the US has announced a new round of federal funds to underpin a strong domestic manufacturing. Administered by the Department of Energy (DoE) this $3.5 billion package is the second part of a large $6 billion-plus program that started awarding funds to applicant firms last year. The funding is part of a series of initiatives taken by the US to ensure a significant part of manufacturing to support the energy transition remains within the country, and if not exports, meets domestic needs at least.  The DoE release says ” the funding will create new, retrofitted, and expanded domestic facilities for battery-grade processed critical minerals, battery precursor materials, battery components, and cell and pack manufacturing, all of which are critical to supporting clean energy industries of the future, such as renewable energy and electric vehicles.”

In the new push, firms have until January 9, 2024 to apply for support with concept papers to the Department of Energy. Full applications will need to be submitted by March 19, 2024. The DOE will be conducting four funding rounds for this initiative, with a minimum federal award of $50 million and a maximum of $300 million. In August 2024, the DOE will announce the applications that will be funded in the first round. That list should make for some interesting viewing, especially as many foreign players are also expected to apply for expanding or establishing facilities in the US.

This focus of the new package is on the extraction and development of raw materials for batteries alongside battery manufacturing and recycling.

Key areas in focus are lithium extraction in both hard-rock and brine mining operations, silane gas production for battery precursors, and rare earth metals. On the battery production side, a variety of cells and chemistries are eligible for funding, including next-generation solid-state batteries and their various components. Both pilot and commercial-scale projects are eligible for funds.