US battery startups have secured a significant financial boost, with the Department of Energy (DOE) announcing $500 million in grants. The funding, announced on Thursday, is intended to strengthen the domestic battery supply chain, reduce reliance on foreign sources, and advance national security.
Much of the grant money has been directed towards startups. Coreshell, a battery materials startup, received $50 million to expand manufacturing for its metallurgical silicon anode material. A spokesperson for Coreshell noted that defense applications for lithium-ion batteries are a key part of current discussions.
Other companies also received substantial grants. Lilac Solutions, which extracts lithium from brines, was awarded $100 million to construct a processing facility on Utah's Great Salt Lake. This facility aims to produce 5,000 metric tons of lithium carbonate annually by 2028, a crucial precursor for battery production. Nth Cycle also received $100 million to build a facility that will refine black mass from recycled lithium-ion batteries, producing lithium and nickel compounds for new batteries.
Megan O’Connor, co-founder and CEO of Nth Cycle, stated that there is clear demand from the defense sector, alongside continued demand from the automotive industry. The grants follow a period where US battery startups faced challenges after incentives for batteries and electric vehicles were reduced.