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The administration announced a $500 million award to seven companies to strengthen the U.S. battery supply chain and reduce reliance on China.

The administration announced a $500 million award to seven companies working in battery minerals, materials, manufacturing, and recycling. This funding is part of a larger effort to reduce the United States' dependence on China, which currently processes about 95% of spodumene and produces approximately 85% of global cathode active material. To address these gaps, the administration awarded $50 million to Coreshell Technologies for developing battery anodes from domestically sourced silicon. Lilac Solutions received $100 million to develop a method for extracting lithium from salt water brine, bypassing a common refining process that China currently dominates. While the administration seeks to rebuild domestic capacity, analysts and executives note that current funding is small compared to the requirements of achieving comprehensive scale. Experts suggest that building comparable capacity to China could require tens or hundreds of billions of dollars over several decades. Additionally, the administration ended federal tax credits for electric vehicles and canceled nearly $24 billion in announced battery projects since January 2025. The administration also pursues an international strategy to diversify mineral supplies through partnerships with allies like Australia and Japan, and by reviving projects like the Ambler Road project in Alaska.

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