● Covered by 1 source · 1 reportMedium impact1 neutral
US Battery Startups Receive $500M DOE Grants, Bolstered by Defense Sector Demand
Key points
- DOE awarded $500 million in grants to US battery startups.
- Funding aims to bolster the domestic battery supply chain and national security.
- Defense applications for batteries are increasing, providing new demand.
- Grants went to companies like Coreshell, Lilac Solutions, and Nth Cycle.
DOE Grants Bolster US Battery Supply Chain
The U.S. Department of Energy (DOE) announced $500 million in grants aimed at strengthening the domestic battery supply chain. This initiative seeks to decrease reliance on foreign battery sources, enhance national security, and advance American energy independence. A significant portion of these funds was allocated to battery startups.
Defense Sector Provides New Demand
US battery startups, which previously faced challenges due to the elimination of battery and electric vehicle (EV) incentives, are now finding support from the defense industry. Batteries are increasingly critical for military applications, including drones, torpedoes, infantry radios, and fighter jets. This growing demand from the defense sector is a key factor in the recent funding decisions.
Key Grant Recipients
Coreshell, a battery materials startup, received a $50 million award from the DOE to expand manufacturing of its metallurgical silicon anode material. Lilac Solutions, which extracts lithium from brines, secured $100 million to construct a processing facility in Utah to produce 5,000 metric tons of lithium carbonate annually by 2028. Nth Cycle also received $100 million to build a facility for refining black mass from recycled lithium-ion batteries, producing lithium and nickel compounds for new battery production.
Impact on the Industry
While the automotive sector still represents a large market for batteries, the defense sector's demand is becoming a significant driver for battery technology development and manufacturing in the US. This shift helps mitigate the impact of earlier reductions in EV incentives, providing a stable demand channel for emerging battery companies.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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Reporting from
The Department of Energy awarded $500 million in grants to US battery startups to strengthen the domestic battery supply chain, with a focus on reducing reliance on foreign sources and supporting national security. This funding provides a lifeline for startups facing reduced EV incentives, as the defense sector increasingly drives demand for advanced battery technologies.