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US government unlocks 3.5 billion to boost domestic production of advanced batteries

The U.S. Department of Energy (DOE) has unveiled a substantial investment of up to 3.5 billion, sourced from the Infrastructure Law, dedicated to bolstering the nationwide production of advanced batteries. This funding aims to establish and expand domestic facilities for crucial battery-grade minerals, precursor materials, components, as well as cell and pack manufacturing. 

Emphasizing the creation and retention of well-paying union jobs within the manufacturing sector, this investment, managed by DOE’s Office of Manufacturing and Energy Supply Chains (MESC), aligns with the Biden-Harris Administration’s ambitious goals: achieving a net-zero emissions economy by 2050, ensuring electric vehicles account for half of new light-duty vehicle sales by 2030, and fortifying a resilient domestic supply chain.

“Positioning the United States front and center to meet the growing demand for advanced batteries is how we boost our global competitiveness, maintain and create good-paying jobs, and strengthen our clean energy economy” said U.S. Secretary of Energy Jennifer M. Granholm. “President Biden’s historic investments are giving the boost needed to build a robust domestic battery supply chain that is Made-in-America.”

The funding opportunity is the second phase of $6 billion in total provided by the Bipartisan Infrastructure Law. In the first phase, DOE awarded fifteen projects that are catalyzing over $5.8 billion in public/private investment. This second phase will boost domestic battery manufacturing and supply chains to effectively support the clean energy transition.

This second phase prioritizes delivering strong benefits for American workers. The funding opportunity will promote collective bargaining agreements and/or projects that create a high-quality, high-wage hourly production workforce through the community benefits plans.

In this funding opportunity, DOE is prioritizing next-generation technologies and battery chemistries, in addition to lithium-based technologies. Other new focus areas include precursor production and manufacturing for specialized, non-light duty markets. DOE is also calling for projects that will increase separation of battery-grade critical materials, expand production facilities for cathode and anode materials production, and expand battery component manufacturing facilities (i.e., projects that will attract further investment into topic areas solicited in the program’s first phase).

The topic areas of focus for future iterations of this program will be updated approximately every six months to account for market and technology evolution, and investment selections will be made in consecutive rounds.


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