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The Energy Department will award more than $3 billion in grants to battery manufacturing projects in 14 states, it announced last Friday (Reuters, subscription).

What’s going on: “The projects will increase domestic production of advanced batteries and battery materials and follow the adoption of U.S. EV tax credit rules to shift battery production and critical minerals away from China.”

• The money will “fund battery-grade processed critical minerals, components, battery manufacturing and recycling” and is expected to generate $16 billion in total investment, as well as support the creation of 12,000 construction and production jobs.
• The award announced Friday is the second round of funding in the battery manufacturing component of the Biden administration’s “Investing in America” agenda. The first, announced in 2022, ultimately saw $1.82 billion given to 14 projects.

Where it’s going: Among this round’s awardees is chemical manufacturer Dow, which will receive “$100 million to produce battery-grade carbonate solvents for lithium-ion battery electrolytes.” Other recipients and their plans include the following:

• Battery-grade graphite producer Urbix Inc. will get more than $124 million for the “construction and operation of one commercial module capable of producing approximately 10,000 tonnes of [high-quality coated spherical purified graphite] per year at a facility that may be expanded for additional modules in the future” (DOE).
• Global mining and metals company South32’s Hermosa project is getting “$166 million … for the mining of high purity manganese sulfate monohydrate (HPMSM) for electric vehicle battery chemistries,” according to the AP.

Why it’s important: “It is critical to U.S. energy security that we expand and fortify our clean-energy component manufacturing supply chains,” said NAM Vice President of Domestic Policy Chris Phalen. “These awards will help us do exactly that.”