DOE Announces Over $3 Billion in Funding Opportunities to Support U.S. Battery Supply Chain Buildout

On Could 2, 2022, The U.S. Division of Power (“DOE) issued through its Office of Manufacturing and Energy Supply Chains (“MESC”) and Workplace of Power Effectivity and Renewable Power (“EERE”) Funding Opportunity Announcement (“FOA”) No. DE-FOA-0002678 directing $3.1 billion from the Infrastructure Funding and Jobs Act (“IIJA”) to assist a home battery provide chain, particularly, “new, retrofitted, and expanded commercial facilities as well as manufacturing demonstrations and battery recycling.” A separate FOA was additionally introduced offering a further $60 million for “second-life applications for batteries once used to power EVs, as well as new processes for recycling materials back into the battery supply chain.”

DOE’s announcement described each FOAs as “key elements of the Administration’s whole-of-government provide chain technique to strengthen America’s power independence to cut back our reliance on competing nations and assist the President’s aim to have electrical autos make up half of all autos gross sales in America by 2030.”  

Below the $3.1 billion FOA, DOE anticipates 17-34 awards between $50 million and $400 million.

The FOA organizes 12 particular areas of curiosity into two broad grant classes:

  1. Battery Materials Processing

  2. Battery Element Manufacturing and Recycling

Candidates are required to submit a Letter of Intent by Could 27, with a full Utility Submission Deadline of July 1, 2022.

The separate $60 million recycling FOA requires submission of Idea Papers by Could 31 and a full Utility Submission by July 19, 2022.

DOE famous that the IIJA approved greater than $7 billion to strengthen the U.S. battery provide chain, from uncooked supplies to home manufacturing, together with different funds put aside for extra downstream battery storage deployment and EV charging infrastructure.

This week’s funding alternatives come on the heels of a various array of Govt Department actions to spur home funding in U.S. battery storage applied sciences for electrical autos and stationary power storage.

On April 18, the DOE’s Mortgage Assure Program announced a conditional dedication to lend up to $107 million to Syrah Applied sciences, LLC to increase its facility in Vidalia, Louisiana to ramp up manufacturing of pure graphite-based energetic anode materials (AAM) for electrical autos. If the mortgage closes, it is going to be the primary Superior Know-how Autos Manufacturing (ATVM) program mortgage in over 10 years and the primary mortgage to an upstream provide chain entity reasonably than an electrical car producer.

In late March, President Biden invoked the Defense Production Act with respect to uncooked supplies for large-capacity batteries, together with lithium, nickel, cobalt, graphite, and manganese. The invocation requires the U.S. Division of Protection to assist feasibility research to assist the securing of a home provide of such supplies by means of “environmentally responsible domestic mining and processing; recycling and reuse; and recovery from unconventional and secondary sources, such as mine waste.” Learn Lauren Loew’s coverage of rising lithium costs and the dearth of U.S. capability.

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