The US Department of Energy (DOE) has allocated more than $3 billion to fund 25 projects aimed at enhancing battery manufacturing capabilities across 14 states. These projects are part of the Biden-Harris Administration’s Investing in America initiative and are designed to increase domestic battery material production, align with EV tax credit rules, and reduce reliance on China.
The investment, managed by the Office of Manufacturing and Energy Supply Chains (MESC), will generate over 8,000 construction jobs and 4,000 operational jobs. The projects will modernize and establish facilities for processing critical minerals like lithium, graphite, and manganese, and manufacture components such as electrolyte salts and cathode materials. More than half of the projects have committed to labour agreements.
Key projects include $166 million for South32 Hermosa’s manganese mining in Arizona and $166.1 million for Element 25’s project in Louisiana. The initiative is expected to attract $16 billion in total investment, with a focus on reshoring critical EV and battery supply chains. Additionally, the DOE recently announced $63 million to support battery recycling and technologies for small and medium manufacturers.