2 months ago
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The federal government is handing out another $3 billion to startups in the buzzy battery tech sector.
The investment, which the Biden administration announced Friday, is the latest injection of capital to come from a $16 billion pot that the Department of Energy set aside to build out local battery manufacturing, processing, and recycling facilities. It’s part of the broader Inflation Reduction Act, which passed into law in August 2022 and includes incentives to boost the domestic battery industry and reduce reliance on the world’s battery incumbent, China.
This tranche of funding went to startups across 14 states, but there were certain winners that will see the bulk of the expected 18,000 jobs to be created as a result of this funding. South Carolina companies secured the most funding, with five projects being awarded $850 million. For example, Cirba Solutions grabbed a $200 million bag to build, own, and operate a facility to process large-scale battery grade salts to support the electric vehicle market.
Four Michigan companies snagged a total $355 million in grant money. General Motors-backed Mitra Chem got $100 million from the DOE and another $25 million from the state of Michigan’s Competitiveness Fund. The company will partner with Sun Chemical to build a facility that will develop and manufacture lithium-iron phosphate materials for electric vehicles and battery storage systems.
The DOE also awarded venture-backed battery recycling startup Ascend Elements $125 million, alongside chemical manufacturing company Orbia, to build a recycled graphite production facility in Kentucky that converts graphite residue from lithium-ion battery recycling and cathode material production into battery-grade graphite.
The loans and grants will go to companies working across the battery supply chain, from critical mineral extraction to production of cathode and anode materials, from electrolyte salt production to battery recycling.
Here’s a list of all of the startups that have secured funds:
The DOE awarded $3 billion to 25 battery startups as part of the Battery Materials Processing and Battery Manufacturing and Recycling Programs.Image Credits: U.S. Department of Energy
