"Investing in America" agenda is expected to generate $16 billion for onshoring critical minerals, processing and battery tech.

As part of the Biden-Harris Administration's Investing in America agenda, the U.S. Department of Energy announced it will be funding over $3 billion to 25 selected projects across 14 states to boost domestic production of batteries and battery materials. The portfolio of selected projects is intended to support projections of over 12,000 battery industry jobs nationwide.

The selected projects will utilize the funding administered by DOE's Office of Manufacturing and Energy Supply Chains (MESC) to retrofit, expand, and build new domestic facilities to process battery-grade minerals as well as battery components, manufacturing, and recycling.

"The Biden-Harris administration is using every available tool to onshore and friend-shore the supply chain for EVs and batteries, working with our allies and partners, for the benefit of our national security, our economy, and our planet," said John Podesta, Senior Advisor to President Biden for International Climate Policy. "Today's battery manufacturing grants from DOE will boost America's manufacturing base, create good-paying union jobs all over the country, and help tackle the climate crisis."

A strong portfolio

Through grants and loans, the DOE has been developing a diversified portfolio of projects that help develop a secure and circular battery manufacturing supply chain within the U.S.

The Investing in America agenda is forecast to generate $16 billion in total investment for battery manufacturing and recycling through the Battery Materials Processing and Battery Manufacturing and Recycling Programs.

Using in-depth economic and supply chain analyses, MESC collaborates with experts to identify security gaps and growth opportunities across the nation's energy supply chains, from raw materials to processing and manufacturing, to inform investment and program implementation.

This most recent announcement of selections builds on past progress and further addresses current and approaching supply chain challenges. The projects represent strategic segments across the supply chain, from building and expanding commercial-scale facilities to extracting and recycling critical minerals, including lithium, graphite, and manganese, as well as manufacturing battery and energy transition technologies and components necessary to a robust battery supply chain.

The selected projects also cover the production of electrolyte salts, solid-state electrolytes, polymers for separators, cathode and anode materials, as well as next-generation lithium-ion chemistries, non-lithium-ion technologies, to ensure that the U.S. has a diverse portfolio of domestic battery technologies that can reinforce vital energy and resource security.

Before funding is issued to selectees, applicants will undergo a negotiation process, and the DOE will complete environmental reviews and may cancel negotiations and rescind the selection for any reason during that time.

"We're in the midst of a manufacturing revival in the United States as the Biden-Harris Administration's Investing in America agenda continues to breathe new life into communities and local economies across the country," said U.S. Secretary of Energy Jennifer Granholm. "By positioning the U.S. at the forefront of advanced battery manufacturing, we are creating high-paying jobs and strengthening our global economic leadership and domestic energy security, all while supporting the clean energy transition."

Office of Manufacturing and Energy Supply Chains

A map detailing the round 1 awarded and round 2 selected projects for accelerating the U.S. domestic battery supply chain.

Round 2 key players

American Battery Technology Company (ABTC) is continuing its winning streak, planning to construct a new commercial-scale lithium-ion battery recycling facility to process approximately 100,000 tons of battery materials per year from its battery manufacturer and automotive OEM partners.

Next to a host of lithium projects underway from fellow selectees, Albemarle's Project is to retrofit a domestic manufacturing facility to produce commercial quantities of anode material for next-generation lithium-ion batteries.

Ascend Elements, together with their subrecipient, Orbia, aim to construct first-of-its-kind recycled graphite production facilities that convert graphite residue from an existing lithium-ion battery recycling and cathode material production operation into battery-grade graphite with purity greater than 99.95% and a lower carbon footprint than traditionally produced graphite.

Blue Whale Materials is an American company building and operating advanced lithium-ion battery recycling facilities with a proprietary process producing a high yield, high purity, and dry mixed metal precursor that contains up to 98% of the cobalt and nickel metals in end-of-life lithium-ion batteries and production scrap while reducing impurities such as aluminum, copper, fluorine, and volatile electrolyte organics.

Element 25 (Louisiana) plans to build and operate a first-of-its-kind, environmentally sustainable refining facility in the Baton Rouge area, Louisiana, to produce high-purity manganese sulfate monohydrate, a critical raw material in lithium-ion batteries.

Li Industries (LII) proposes retooling of a former manufacturing facility to establish a lithium iron phosphate cathode active material direct recycling and production plant. General Motors is supporting LII in the development of technology to enable the direct recycling process, and LII is partnering with others to build and operate the facility.

The REV Nickel Project is an innovative partnership between a next-generation critical mineral processing company and the only operating U.S. primary nickel mine to turn metal-bearing waste streams, mine tailings and spent batteries into valuable critical materials.

South32's Hermosa Project will be the only domestically mined source of high-purity manganese sulfate monohydrate (HPMSM) for electric vehicle battery chemistries. The battery-grade manganese will be made from ore sourced in Arizona from the U.S.'s first mine project in the FAST-41 permitting process to meet the growing demands of the North American EV supply chain.

The SWA Lithium project is expected to be one of the world's first commercial-scale direct lithium extraction projects located in the Smackover Formation in southwest Arkansas. At full capacity, the project has the potential to produce up to 45,000 metric tons per year of battery-quality lithium carbonate over a minimum 20-year operating life.

Learn more about the selected projects here.