The U.S. Energy Department announced plans to award $3 billion to 25 projects focused on battery manufacturing in 14 states, aimed at enhancing domestic production capabilities. This initiative follows the introduction of new U.S. tax credit rules for electric vehicles (EVs) and seeks to strengthen the supply chain for critical battery materials.
These awards will support the production of battery-grade processed critical minerals, components, and recycling efforts, contributing to a total investment of $16 billion across the projects. The initiative is expected to create approximately 12,000 jobs in production and construction.
White House climate adviser Ali Zaidi emphasized the importance of mineral security for advancing climate objectives, stating, “This sets us up to lead on the next generation of battery technologies.”
Notable allocations include $67 million to Albemarle for an anode material production facility in North Carolina, and $126.6 million to Honeywell to establish a commercial-scale plant in Louisiana for key electrolyte salts necessary for lithium batteries. The Department of Energy (DOE) also plans to award $100 million to Dow for producing battery-grade carbonate solvents.
Additionally, Clarios Circular Solutions, in collaboration with SK ON and Cosmo Chemical, is set to receive $150 million for a recycling project in South Carolina aimed at utilizing lithium-ion battery production scrap. Currently, much of this scrap is exported for processing, primarily in China.
Other significant awards include $225 million for SWA Lithium to produce lithium carbonate using Direct Lithium Extraction (DLE) technology, and $166 million to South32 Hermosa for mining high purity manganese sulfate in Arizona, which is crucial for EV battery production.
Group14 Technologies will receive $200 million to develop a silane manufacturing plant in Washington, while Birla Carbon is set to get $150 million for synthetic graphite production without using materials sourced from China. These projects must complete negotiations and environmental reviews before receiving final approval for funding.
Discover in-depth supply chain report news insights at The Supply Chain Report. For international trade tools, see ADAMftd.com.
#BatteryManufacturing #CleanEnergy #EVProduction #DomesticSupplyChain #SustainableTechnology
