The Department of Energy selected seven projects to share $500 million aimed at securing battery material and critical mineral supply chains on Aug. 20, specifically targeting reduced dependence on China’s dominant position in global processing of lithium, cobalt, nickel and rare earths.
The investment spans mining, processing and manufacturing stages of the battery supply chain, addressing vulnerabilities at every level of the pipeline that feeds electric vehicles, grid storage and military applications.
China currently dominates global processing of the critical minerals essential for modern battery technology, controlling the majority of refining capacity for lithium, cobalt and other materials, according to the DOE announcement. The seven selected projects are designed to build domestic alternatives.
Battery materials are essential not only for the commercial electric vehicle market but also for military applications including unmanned systems, portable power and grid-scale energy storage at military installations, the department said.
The initiative is part of the administration’s broader critical minerals strategy, which also includes the Department of War’s $750 million investment in Brazilian rare-earth extraction from Serra Verde. Together, the investments represent more than $1.25 billion directed at reducing mineral supply chain dependence on adversary nations.
The seven selected projects span multiple states and address different segments of the supply chain, from raw material extraction to intermediate processing to finished battery component manufacturing.
The DOE’s Office of Manufacturing and Energy Supply Chains administered the selection process, which evaluated projects based on their potential to reduce import dependence, create domestic jobs and strengthen supply chain resilience.