DOE Awards $500 Million to 7 Battery Firms as China Keeps 80% Cell Production Lead
Updated
Updated · CNBC · Sep 8
DOE Awards $500 Million to 7 Battery Firms as China Keeps 80% Cell Production Lead
2 articles · Updated · CNBC · Sep 8
Summary
$500 million in DOE grants went to seven U.S. battery minerals, materials, manufacturing and recycling companies in August, marking the Trump administration's first awards under two $3 billion battery programs.
The funding targets chokepoints dominated by China, including anodes and lithium processing; recipients include Coreshell with $50 million and Lilac Solutions with $100 million.
Analysts and executives said the awards are too small to materially loosen China's grip, noting it still handles about 95% of spodumene processing and makes roughly 80% of global battery cells.
The push also clashes with broader policy reversals: after Trump ended EV tax credits and other battery support, nearly $24 billion in announced U.S. battery projects has been canceled since January 2025.
That leaves U.S. battery ambitions racing against a larger Chinese market and manufacturing base, even as energy storage demand grows 70% on average and companies call the grants only an early step.