DOE Awards $500 Million to Battery Startups as Defense Demand Offsets EV Incentive Cuts
Updated
Updated · TechCrunch · Aug 22
DOE Awards $500 Million to Battery Startups as Defense Demand Offsets EV Incentive Cuts
3 articles · Updated · TechCrunch · Aug 22
Summary
$500 million in DOE grants will fund U.S. battery supply-chain projects, with much of the money going to startups after federal battery and EV incentives were cut.
The department framed the awards as a national-security move to reduce foreign dependence, while startups said defense demand is helping support business tied to drones, torpedoes, radios and fighter jets.
Lilac Solutions won $100 million to build a Great Salt Lake lithium-processing plant targeting 5,000 metric tons of lithium carbonate a year by 2028; Nth Cycle got $100 million for a battery-recycling refining facility.
Coreshell received $50 million to expand silicon anode material manufacturing, underscoring how defense-linked investors and suppliers are becoming a lifeline for battery companies.
Defense demand remains far smaller than autos—about $200 million in annual Pentagon battery purchases in 2021 versus nearly $18 billion expected in U.S. automotive battery manufacturing spending this year.