Federal Government Distributes $3 Billion to 25 Battery Startups
The Department of Energy allocates $3 billion to 25 battery technology startups across 14 states to strengthen domestic manufacturing and reduce reliance on China.
The federal government distributes $3 billion to 25 battery technology startups across 14 states. This investment comes from a $16 billion fund established by the Department of Energy to support local battery manufacturing, processing, and recycling facilities as part of the Inflation Reduction Act. The initiative aims to boost the domestic battery industry and reduce reliance on China.
South Carolina companies secure the largest portion of the funding, with five projects receiving a combined $850 million. Michigan follows with four companies capturing $355 million, including a $100 million award to General Motors-backed Mitra Chem for lithium-iron phosphate material production. Overall, these projects expect to create approximately 18,000 jobs across the United States.
The grants and loans support a wide range of operations across the entire battery supply chain. Funded startups work on critical mineral extraction, cathode and anode material production, electrolyte salt processing, and battery recycling. Notable recipients include Ascend Elements, which receives $125 million to build a facility in Kentucky that converts graphite residue into battery-grade graphite.