US to Allocate $3 Billion to 25 Battery Manufacturing Projects, Reports Reuters

By David Shepardson

WASHINGTON – The U.S. Energy Department announced plans on Friday to allocate $3 billion to support 25 projects in the battery manufacturing sector across 14 states. This initiative is part of the Biden administration’s effort to transition the supply chain away from reliance on China.

These projects aim to boost domestic production of advanced batteries and battery materials, coinciding with new U.S. EV tax credit regulations that encourage the relocation of battery production and sourcing of critical minerals from China.

The funding will cover areas such as battery-grade processed critical minerals, essential components, battery manufacturing, and recycling efforts. The department anticipates that these projects will generate a total investment of $16 billion and create approximately 12,000 jobs in production and construction.

“Mineral security is essential for climate security,” emphasized White House climate adviser Ali Zaidi. “This positions us to take the lead in the development of next-generation battery technologies, including solid-state and other innovative chemistries.”

Albemarle is set to receive $67 million for a project in North Carolina focused on producing commercial quantities of anode material for next-generation lithium-ion batteries. Concurrently, Honeywell has been awarded $126.6 million to establish a commercial-scale facility in Louisiana for the production of a key electrolyte salt required for lithium batteries.

The Energy Department plans to award $100 million to Dow for producing battery-grade carbonate solvents essential for lithium-ion battery electrolytes. Additionally, Clarios Circular Solutions, in partnership with SK ON and Cosmo Chemical, is set to gain $150 million for a project in South Carolina aimed at recycling lithium-ion battery production scrap from SK ON, which is the battery division of SK Innovation.

Currently, much of the scrap material from U.S. production is sent abroad for processing, primarily in China, according to the Energy Department.

The department intends to award $225 million to SWA Lithium, which is jointly owned by Standard Lithium and Equinor, to produce lithium carbonate using Direct Lithium Extraction (DLE) technology. Another $225 million award is planned for TerraVolta Resources to extract lithium from brine utilizing DLE.

Revex Technologies, a partnership co-founded by Lundin Mining, is set to receive $145 million for three facilities in Michigan to convert waste from the only operating primary nickel mine in the U.S. into domestic nickel production for an estimated 462,000 electric vehicle batteries each year.

The Energy Department plans to allocate $166 million to South32 Hermosa in Patagonia, Arizona for the extraction of high purity manganese sulfate monohydrate (HPMSM) used in electric vehicle battery production. Currently, over 96% of HPMSM production occurs in China.

An additional $166.1 million is designated for another HPMSM project in Louisiana, awarded to Element 25, utilizing manganese ore sourced from an Element 25 mine in Western Australia.

Group14 Technologies is set to receive $200 million to develop a silane manufacturing plant in Moses Lake, Washington. Currently, the largest supply of silane, a material required for silicon batteries, is sourced from China.

Birla Carbon is expected to receive $150 million for the development of next-generation synthetic graphite that does not utilize materials from China.

Previously, the Energy Department awarded $1.82 billion to 14 various projects. It was noted that the selected projects must complete negotiations and an environmental review prior to receiving their funds.