DOE Prepares to Launch Third Round of Battery Manufacturing and Recycling Grants Program

     The Department of Energy (DOE) Office of Manufacturing and Energy Supply Chains (MESC) is gearing up to release the third round of its highly anticipated Battery Materials Processing and Battery Manufacturing Grants program. With up to $725 million in funding available, this initiative aims to strengthen U.S. manufacturing and reduce reliance on foreign suppliers for critical battery materials. The DOE plans to officially release the funding opportunity in spring 2025, subject to appropriations.

     The program is part of a broader effort by the DOE to enhance U.S. supply chains for critical materials, helping meet the growing demand for batteries while ensuring energy independence and economic resilience. It will support the establishment or expansion of demonstration and commercial facilities involved in battery materials processing and manufacturing, which includes materials like precursors, electrolytes, salts, and components necessary for creating advanced batteries. Recycling efforts will also be prioritized to support a circular economy and reduce waste.

Key Program Information 

Post Date: Anticipated Spring 2025 Release Date

Total Program Funding: Up to $725 million, subject to appropriations

Award Range: $50 million to $200 million

Number of Awards: Estimated 3 to 14 awards

Cost Share: Estimated minimum of 20%

Period of Performance: 24–60 months

Topic Areas

The funding opportunity will prioritize several critical areas in the battery supply chain, including:

• Battery Cathode and Anode Materials: Create U.S. manufacturing and recycling capacity to produce cathode critical minerals and materials or anode materials. 

• Electrolytes and Salts: Create U.S. manufacturing capacity to produce electrolytes and/or electrolyte salts. This remains a supply chain investment gap as nearly all electrolyte salt today is sourced through FEOC supply chains.

• Pre-Industrial Cell Manufacturing: Accelerate pathways to commercialization of new battery and domestic manufacturing equipment/machinery technologies by supporting and increasing the availability of shared-access battery production   lines

• Materials Processing and Manufacturing: Create U.S. manufacturing capacity to produce battery materials, components, or enable process technologies such as precursors; materials processing; catalysts; binders; separators; conductive  additives; and current collector materials, structures, and treatments.

In addition to the topics above, projects that promote sustainability and further integrate the principles of a circular economy will be given strong consideration. Projects that minimize engagement with foreign entities of concern (FEOC) in sourcing or exporting materials will receive priority. Applicants must also identify off-take partners and downstream customers to demonstrate their projects' economic viability and sustainability.

What to Expect

    DOE stresses that this announcement is a Notice of Intent (NOI) and does not guarantee the release of the funding opportunity as described. The department may modify the opportunity or issue a different funding announcement altogether. Interested applicants are encouraged to monitor MESC updates closely and begin preparing to submit proposals once the official funding opportunity is posted in the coming months.

For more information on this funding opportunity, view the full notice here.