In support of the Biden-Harris Administration’s Investing in America agenda, the U.S. Department of Energy (DOE) announced today the availability of up to $63 million to assist state and local governments in expanding battery recycling and modernizing American manufacturing through advanced technologies. Administered by DOE’s Office of Manufacturing and Energy Supply Chains (MESC), this funding aims to advance tools and resources necessary for achieving a net-zero economy by 2050, while also bolstering America's global leadership in manufacturing.
"America’s revolutionary clean energy future requires a modernized manufacturing sector, and the Biden-Harris Administration is helping us get there,” said U.S. Secretary of Energy Jennifer M. Granholm. “The funding announced today will equip small- and medium-sized manufacturers with cutting edge technologies to improve operations efficiency and expand battery recycling, removing barriers to advancement and bolstering the nation’s competitive standing.”
**Battery Recycling**
Batteries are integral to daily life. Collecting spent batteries and recovering critical minerals such as cobalt, lithium, and graphite through recycling is both cost-effective and sustainable for sourcing domestic materials required for new batteries. This funding will help establish new recycling programs accessible at retail locations or community sites like libraries.
This initiative includes $41 million for the second phase of a total $50 million provided by the Bipartisan Infrastructure Law aimed at state and local government battery recycling programs. In its first phase, DOE selected projects expected to generate over $14.4 million in public/private investment. The second phase seeks projects in partnership with state and local governments to enhance battery collection, recycling, reprocessing efforts, alongside awareness, education, and community benefits.
**Smart Manufacturing**
In addition to enhancing battery collection efforts, DOE is partnering with states to modernize domestic manufacturing by increasing access to advanced technologies.
Smart manufacturing employs emerging technologies to boost efficiency within traditional manufacturing processes—lowering costs, improving energy efficiency and performance, reducing material demand, and enhancing product quality—thereby making American firms more competitive globally. Currently, most small- and medium-sized manufacturers do not utilize smart manufacturing due to high initial costs and limited access to training resources; this program aims to bridge that gap.
The funding includes $22 million towards the second phase of the State Manufacturing Leadership Program's total $50 million budget. The first phase supported 12 projects assisting over 3,500 SMMs in adopting smart manufacturing technologies. The second phase aims to extend support further by providing technical assistance, training opportunities, facility assessments, apprenticeships, financial aid for smart improvements—up to $2 million per project over three years—with applicants needing a minimum cost share of 23.1%.
This initiative supports the Biden-Harris Administration’s Justice40 Initiative which targets directing 40 percent of federal investments' overall benefits towards disadvantaged communities affected by underinvestment or pollution. Projects must include meaningful community engagement while advancing diversity, equity inclusion accessibility; investing in America’s workforce.
Further details about this funding opportunity can be accessed online along with information on an upcoming webinar scheduled for August 6th at 2:30 pm ET. Full applications are due by September 16th at 5:00 pm ET.
Learn more about MESC's mission supporting investments in America's energy future related re-shoring skilling scaling U.S.manufacturing across energy supply chains.
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