Earlier this week, the U.S. Department of Energy awarded a limited breakdown for grants that would be used to improve battery production for the energy storage and electric vehicle markets. These grants, which total $2.9 billion, are among the few mentioned in the Bipartisan Infrastructure Deal.
Funds will be allocated by the Office of Energy Efficiency and Renewable Energy under the Department of Energy and will be used to finance battery pack and cell recycling and manufacturing facilities and battery materials production and refining plants. The Office of Energy Efficiency and Renewable Energy has released two notices to issue announcements for funding opportunities between April and May of this year. They note that the estimated performance period for every award will be three to four years.
These opportunity announcements are the pinnacle of a decade of America wanting to play a bigger role in the global battery supply chain. Most nations, including the United States, acquire the majority of their electric vehicle and energy storage system batteries from the Asia Pacific region, particularly from China.
The first funding opportunity announcement will be allocated a huge portion of the funds, at $2.8 billion. This opportunity announcement has stipulated minimal amounts for particular areas, some of which are set for processing of battery materials. They include:
- A $50 million minimum for demonstration projects in the U.S. for battery materials processing
- A $50 million minimum for projects involving retrofitting, retooling and/or expansion of at least one battery material processing facility already operating in the country., as long as it meets the qualifying criterion
- A $100 million minimum for new commercial-scale battery material processing facilities in the U.S.
The remaining minimum funding amounts are set for battery component recycling and manufacturing. They include:
- A $50 million minimum for demonstration projects for advanced battery manufacturing and recycling, and advanced battery component manufacturing
- A $50 million minimum for projects that entail retrofitting, retooling and expanding at least a single facility for advanced battery manufacturing and recycling, and advanced battery component manufacturing, as long as they meet the qualifying criteria
- A $100 million minimum for new commercial-scale advanced battery manufacturing or recycling facilities, and advanced battery component manufacturing facilities
It should be noted that every facility must be located in the United States. The other smaller funding opportunity announcement will award $20 million for second-use, scale-up demonstration projects and $40 million for processing, reintegration and recycling in the battery supply chain.
As the federal government adds its support to the battery and energy storage sector, companies such as StorEn Technologies Inc. are likely to see their deployments skyrocket due to the enabling environment created by policymakers and local jurisdictions.
NOTE TO INVESTORS: The latest news and updates relating to StorEn Technologies Inc. are available in the company’s newsroom at https://ibn.fm/StorEn
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