The Department of Defense (DoD) announced a $12.9 million award to Nano One Materials Corp. (Nano One) through the Defense Production Act Investments (DPAI) program. This funding aims to optimize and increase Nano One's production of active materials for lithium iron phosphate (LFP) cathodes at its facilities in Candiac, Québec, and Burnaby, British Columbia.
This initiative is funded by the Inflation Reduction Act (IRA), aligning with the National Defense Industrial Strategy's objective to enhance domestic production of critical materials and the IRA's goals of boosting domestic energy production and promoting clean energy. Since 1992, Canada has been considered a "domestic source" for DPA funds.
"Shoring up domestic production capabilities across key nodes of the large-capacity battery supply chain is essential for meeting growing battery demands," said Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy (ASD(IBP)). "This award is another important advance towards increasing the availability of safer, lower-cost, and longer-lasting battery materials, which will strengthen U.S. national security."
Honorable Jonathan Wilkinson, Minister of Energy and Natural Resources Canada, added: "Canadian businesses are seizing job-creating opportunities delivering secure and reliable supplies of critical minerals to our allies while building up the North American battery supply chain. Today's announcement at the Nano One facility in Candiac, Quebec further cements Canada's place as a reliable global supplier in sustainable battery production with our American partners while complementing over CAD $20 million in investments and support by the Government of Canada. We will continue to advance collaboration with the United States, including through the Energy Transformation Task Force and the Joint Action Plan on Critical Minerals Collaboration."
With these funds, Nano One will demonstrate commercial-scale production of LFP cathode active materials, crucial precursors in the large-capacity battery supply chain. LFP offers significant advantages for military applications due to its high power, safety characteristics, and long cycle life. Moreover, all LFP inputs can eventually be sourced in North America, reducing reliance on foreign sources.
This award is part of 60 awards made by the DPAI program across multiple areas since Fiscal Year 2024 began, totaling $602 million. The DPAI program is overseen by OASD(IBP)'s Manufacturing Capability Expansion and Investment Prioritization (MCEIP) directorate.
For more information on MCEIP: https://www.businessdefense.gov/ibr/mceip/index.html
About OASD(IBP)
The Office of the Assistant Secretary of Defense for Industrial Base Policy works with domestic and international partners to maintain a robust industrial base that supports current and future warfighter needs.
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