In late September, the U.S. Department of Energy (DOE) announced over $3 billion in funding (grants and loans) for 25 selected projects across 14 states to boost the domestic production of advanced batteries and battery materials nationwide. The portfolio of selected projects, once fully contracted, are projected to support over 8,000 construction jobs and over 4,000 operating jobs.

“Batteries are critical to strengthening the U.S. grid, powering American homes and businesses, and supporting the electrification of the transportation sector,” said the DOE. Administered by DOE’s Office of Manufacturing and Energy Supply Chains (MESC), the selected projects will retrofit, expand, and build new domestic facilities for battery-grade processed critical minerals, battery components, battery manufacturing, and recycling.

“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,” said U.S. Secretary of Energy Jennifer M. Granholm.

“Today’s battery manufacturing grants from DOE will boost America’s manufacturing base, create good-paying union jobs all over the country, and help tackle the climate crisis.” said John Podesta, Senior Advisor to the White House for International Climate Policy.

“Today’s game-changing announcement is helping support the technologies that we need in the market today, the components that we will need in the near future, and the innovative technologies we need to advance our vision for a circular domestic battery supply chain that positions the United States to continue leading the global effort on clean energy,” said White House National Climate Advisor Ali Zaidi.

Boosting a Domestic Battery Supply Chain

Through grants and loans, DOE is developing a diversified portfolio of projects that help deliver a durable and secure battery manufacturing supply chain for the American people. Through MESC, the Investing in America agenda will generate $16 billion in total investment for battery manufacturing and recycling through the Battery Materials Processing and Battery Manufacturing and Recycling Program.

Using market, economic and supply chain security-related technical analysis, MESC collaborates with experts to identify 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.

DOE’s recent announcement of round two selections builds on this progress and aims to further address existing and future supply chain challenges. 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. 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, to ensure that the U.S. has a diverse portfolio of domestic battery technologies that can strengthen our overall energy security.

Creating Good-Paying Jobs Across the U.S. Battery Sector

Of the 25 projects selected, more than half have committed to, or already have signed, a Project Labor Agreement commitment, and 10 have an agreement with labor or a neutrality pledge. Union partners represented across selected projects include NABTU (North America’s Building Trades Unions); Boilermakers; SMART International Association of Sheet Metal, Air, Rail, and Transportation Workers (SMART); Carpenters; Operating Engineers; UFCW (United Food and Commercial Workers International Union); IBEW (International Brotherhood of Electrical Workers); and the UA (United Association of Journeymen and Apprentices of the Plumbing and Pipe Fitting Industry of the United States and Canada).

Selection for award negotiations is not a commitment by DOE to issue an award or provide funding. Before funding is issued, DOE and the applicants will undergo a negotiation process, and DOE will complete environmental review. DOE may cancel negotiations and rescind the selection for any reason during that time.