U.S. Department of Energy awards $500 million to battery startups

U.S. battery startups are increasingly turning to the defense sector for stability following the reduction of electric vehicle incentives. The U.S. Department of Energy recently announced $500 million in grants aimed at strengthening the domestic battery supply chain to reduce reliance on foreign sources and enhance national security.

Several startups have secured significant funding through this initiative. Coreshell received $50 million to expand manufacturing for metallurgical silicon anode material. Lilac Solutions was awarded $100 million to construct a facility at Utah’s Great Salt Lake to produce lithium carbonate. Additionally, Nth Cycle received $100 million to build a facility for refining materials from recycled lithium-ion batteries.

These technologies are critical for military applications, including drones, torpedoes, infantry radios, and advanced aviation. While the automotive industry remains a major consumer, the defense sector provides a consistent demand driver for domestic battery production and material processing.