Biden Administration Awards $3 Billion to Boost U.S. Battery Production, Reduce Reliance on China

The U.S. Energy Department announced plans to allocate $3 billion in funding to 25 battery manufacturing projects across 14 states, as part of the Biden administration’s efforts to reduce reliance on China for critical minerals and battery production. These projects will enhance domestic capacity for producing advanced batteries and battery materials, following the introduction of U.S. EV tax credit rules aimed at shifting the battery supply chain away from China.

The awards are expected to generate $16 billion in total investment and support 12,000 production and construction jobs. The funded projects cover various areas, including battery-grade critical minerals, components, manufacturing, and recycling.

Notable awards include:

• Albemarle: $67 million for a North Carolina project to produce anode material for next-generation lithium-ion batteries.
• Honeywell: $126.6 million to build a facility in Louisiana for producing electrolyte salt used in lithium batteries.
• Dow: $100 million to manufacture battery-grade carbonate solvents for lithium-ion battery electrolytes.
• Clarios Circular Solutions: $150 million for a South Carolina project to recycle lithium-ion battery production scrap materials.

The DOE is also backing the development of Direct Lithium Extraction (DLE) technologies. SWA Lithium, co-owned by Standard Lithium and Equinor, is set to receive $225 million for lithium carbonate production using DLE. Another $225 million will be awarded to TerraVolta Resources for lithium extraction from brine using DLE technology.

Additional key awards include:

• Revex Technologies: $145 million for facilities in Michigan to produce domestic nickel from mining waste.
• South32 Hermosa: $166 million for mining high-purity manganese sulfate in Arizona.
• Group14 Technologies: $200 million to build a U.S.-based silane manufacturing plant in Washington for silicon batteries.

White House climate adviser Ali Zaidi emphasized the importance of mineral security for climate security, saying, "This sets us up to lead on the next generation of battery technologies."

These projects are part of a larger initiative by the DOE, which has already awarded $1.82 billion to 14 projects. The selected projects must still undergo negotiations and environmental reviews before finalizing the awards.