The administration awards $500 million in grants to bolster the domestic battery supply chain and critical minerals.
The administration announced a $500 million grant program to strengthen the United States' domestic battery supply chain and reduce reliance on foreign sources. The Department of Energy distributed the funding across seven projects, including lithium extraction, battery manufacturing, and recycling. Among the primary recipients are Lilac Solutions, which received $100 million to build a lithium-extraction facility on Utah's Great Salt Lake, and Nth Cycle, Inc., which received $100 million to refine black mass from recycled batteries. These investments aim to achieve American energy dominance and fortify national security. While the automotive industry remains a major driver of battery demand, the defense sector is increasingly becoming a significant player. The administration acknowledged that while electric vehicles have faced some setbacks due to the One Big Beautiful Bill, batteries remain essential for modern technology. By onshoring critical minerals, the government seeks to break the supply chain stranglehold held by foreign actors, particularly China.