DOE Issues Notice of Intent for Funding in Strengthening Domestic Critical Materials Processing and Manufacturing to Enhance National Security

The U.S. Department of Energy (DOE) today released a notice of intent for up to $725 million to boost domestic production of battery critical materials, battery components and advanced batteries. Building the battery supply chain and domestic capacity enables large scale deployment and strengthens the U.S. grid energy, bolsters key defense and technology sectors, and supports the growth domestic market for clean vehicles.  

DOE’s Office of Manufacturing & Energy Supply Chains (MESC) intends to re-open the “Bipartisan Infrastructure Law Battery Materials Processing and Battery Manufacturing” funding opportunity for a third round of projects. It is anticipated that the opportunity may include the following topic areas for domestic facilities, with a focus on facilities that support the energy independence of the United States through circularity and secure sourcing:

• Cathode and Anode Materials. Create U.S. manufacturing and recycling capacity to produce cathode critical minerals and materials or anode materials.
   
• Electrolyte and Electrolyte Salts. Create U.S. manufacturing capacity to produce electrolyte and/or electrolyte salts, which remain a supply chain investment gap as nearly all electrolyte salt today is sourced through foreign entities of concern (FEOC) supply chains.  
   
• Pre-Industrial Scale Cell Manufacturing. Accelerate pathways to commercialization of new battery and domestic manufacturing equipment/machinery technologies by supporting and increasing the availability of shared-access battery production lines.
   
• Materials, Processing, and Manufacturing Open Topics. Create U.S. manufacturing capacity to produce battery materials, components, or enable process technologies such as precursors; materials processing; catalysts; binders; separators; conductive additives; and current collector materials, structures, and treatments.

MESC anticipates awarding up to 14 grants with periods of performance from two to five years under the opportunity. The anticipated funding builds upon two previous funding rounds under the Battery Materials Processing and Battery Manufacturing and Recycling Program.  

MESC is committed to securing the domestic energy supply chain through data driven investments and programs. Using market, economic, and supply chain security-related technical analyses, MESC identifies gaps and growth opportunities across the nation's energy supply chains, from raw materials to processing and manufacturing. These analyses inform investment and program implementation.

MESC periodically runs Requests for Information (RFIs) to gain structured industry feedback on commercial and technical challenges facing the energy sector industrial base. Recent results from MESC’s May 2024 RFI on critical material market dynamics highlighted the challenges and volatility in the market and various tools DOE could utilize to support critical materials projects. A particular challenge for domestic processors is the time and cost required to successfully complete qualification for new production capacity, given current market volatility. Applications to this anticipated opportunity may also address pre-production validation and qualification of commercial-scale facility output to secure offtake agreements.

Learn more about MESC’s mission to catalyze investments in America’s energy future in support of the re-shoring, skilling, and scaling of U.S. manufacturing across energy supply chains.