DOE Announces $3 Billion for Battery-Related Projects

The U.S. Department of Energy (DOE) announced on September 20 more than $3 billion for 25 projects aimed at boosting the domestic production of advanced batteries and battery materials. Spread across 14 states, the projects range from mining operations to battery-component plants.

The announcement marks the second round of awards from $7 billion earmarked in the 2021 bipartisan infrastructure law to promote domestic battery projects.

The selected projects span strategic segments across the supply chain, building and expanding commercial-scale facilities to extract and recycle critical minerals including lithium, graphite and manganese, as well as manufacture components, according to the DOE.

“These components represent the most essential building blocks of the battery supply chain, like electrolyte salts, solid state electrolytes, polymers for separators, cathode and anode materials, that are critical to onshore a robust and reliable energy supply chain. The selected projects also cover traditional and next-generation lithium-ion chemistries, as well as non-lithium-ion technologies,” the DOE said in a press release.

U.S. Secretary of Energy Jennifer Granholm said: “By positioning the U.S. at the forefront of advanced battery manufacturing, we are creating high-paying jobs and strengthening our global economic leadership and domestic energy security, all while supporting the clean energy transition.”

The funding through the DOE’s Office of Manufacturing and Energy Supply Chains (MESC) will generate $16 billion in total investment for battery manufacturing and recycling, according to the department.

The program takes aim at China’s grip on many of the raw materials needed to build clean energy projects.

The DOE said the selection of a project for award negotiations is not a commitment to issue an award or provide funding.

“Before funding is issued, DOE and the applicants will undergo a negotiation process, and DOE will complete (an) environmental review,” the department said. “DOE may cancel negotiations and rescind the selection for any reason during that time.”

Lithium developer Standard Lithium Limited (NYSE:SLI) (Vancouver, British Columbia) and Norwegian energy company Equinor (NYSE:EQNR) (Stavanger) said their jointly-owned subsidiary SWA Lithium LLC was selected for up to $225 million award negotiation from the DOE. The funding would support the construction of the central processing facility for Phase 1 of the South West Arkansas project, which is located in Lafayette and Columbia counties, Arkansas, the companies said in a press release.

The central processing facility for Phase 1 is being designed to produce 22,500 tonnes of battery-quality lithium carbonate annually, utilizing direct lithium extraction technology. Standard Lithium is now targeting total output of 45,000 tonnes per annum of lithium carbonate, to be developed in two phases of 22,500 tonnes each. Industrial Info is tracking six Standard Lithium projects, worth $2.4 billion; the company’s flagship projects are located in the Smackover Formation, a world-class lithium brine asset, focused in Arkansas and Texas. Subscribers can click here for the project reports.

Mining and metals company South32 (Perth, Western Australia) said its Hermosa zinc and manganese mining project in southern Arizona was picked by the DOE for a $166 million award negotiation. There has been no manganese ore mining in the U.S. since the 1970s, and more than 95% of the current production of battery-grade manganese is currently in China, the company said.

South32 President Pat Risner said: “This project has the potential to provide a reliable, lower-carbon and cost-effective domestic option for manganese products within the electric vehicle battery supply chain that currently relies entirely on foreign imports.”

Industrial Info is tracking two South32 projects in Arizona, worth more than $2 billion. Subscribers can click here to view the project reports.

Stored energy solutions company EnerSys (NYSE:ENS) (Reading, Pennsylvania) said it was selected by the DOE to enter into award negotiations for $199 million to support the development of the company’s lithium-ion cell production facility in Greenville, South Carolina. EnerSys also has been awarded a comprehensive incentive package through South Carolina and Greenville County valued at approximately $200 million.

The operation would manufacture various form factors of lithium-ion cells for commercial, industrial and defense applications, with an initial production capacity of 5 gigawatt-hours (GWh) per year. Subscribers to Industrial Info’s GMI Industrial Manufacturing Project Database can click here for the project report.

Industrial Info is tracking 212 active capital battery-related manufacturing projects in the U.S., worth $98.5 billion. Subscribers to Industrial Info’s Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a list of detailed project reports.

Subscribers can click here for a list of the project reports mentioned in this article and click here for the related plant profiles.