Washington: The US Department of Energy (DOE) has announced $500 million in funding for seven projects aimed at expanding domestic critical mineral processing, battery manufacturing and recycling capacity. The initiative is part of Washington’s broader push to strengthen domestic supply chains and reduce dependence on foreign sources for strategically important minerals.
The funding, announced on August 20, comes through the third round of the DOE’s Battery Materials Processing and Battery Manufacturing and Recycling programmes. The selected projects cover lithium extraction, cobalt refining, battery recycling and the production of advanced battery materials.
Lithium and Cobalt Projects Get Major Support
Two projects under the battery materials processing programme will receive $100 million each. Waterleaf P1 HoldCo, a Lilac Solutions company, will use the funding to develop a commercial lithium extraction and refining facility near Utah’s Great Salt Lake. The project is expected to produce battery-grade lithium carbonate, with its first phase targeting a significant increase in US lithium production.
Formation Holdings US, doing business as Jervois, will also receive $100 million to establish a commercial cobalt refinery. The facility is expected to produce battery-grade cobalt sulfate and other related materials, strengthening domestic cobalt-processing capabilities.
Battery Recycling and Advanced Materials
Nth Cycle will receive another $100 million for a facility in the southeastern United States to process black mass from end-of-life lithium-ion batteries and manufacturing scrap. The project is designed to recover high-purity metals and battery-grade materials, helping expand domestic recycling and midstream processing capacity.
Four additional projects will receive $50 million each. Princeton NuEnergy will develop a battery-material recovery and rejuvenation facility in Georgia, while Arcanum Ventures plans to produce battery-grade ethylene carbonate for lithium-ion battery electrolytes. Elevated Materials will work on lithium-metal films and prelithiated materials, and Coreshell Technologies will expand US manufacturing of silicon-anode lithium-ion electrodes and cells.
Focus on Supply Chain Security
The DOE said the projects are intended to strengthen US economic and national security by increasing domestic capacity to process, manufacture and recycle critical materials. The programme also seeks to reduce reliance on overseas supply chains, particularly for minerals and materials essential to batteries, energy infrastructure and industrial applications.
The latest investment highlights Washington’s growing focus on building an end-to-end domestic critical minerals ecosystem, covering extraction, processing, battery-material production and recycling.