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BIL 40207(b) Battery Materials Processing and 40207(c) Battery Manufacturing Grants – Round 2

Open Date:


Close Date:


Eligible Recipients:

  • Educational Institution
  • General Public
  • Incorporated Consortia
  • Local Government
  • National Laboratories
  • Non-profit
  • Private Sector
  • State Government

Program Purpose:

  • Economic Development
  • Energy Infrastructure

Reserved for Energy


Upcoming Milestones:


Office of Manufacturing and Energy Supply Chains (MESC)

Funded by:

U.S. Department of Energy


DOE is releasing this Funding Opportunity Announcement (FOA), which supports the Bipartisan Infrastructure Legislation (BIL) goals of delivering more clean energy, create new, good-paying jobs and lowering costs for American families and workers by guiding the Nation towards a one hundred percent carbon pollution-free electricity sector by 2035 and net-zero economy by 2050.

The high-capacity battery supply chain consists of five main steps including:

  1. raw material production,
  2. materials processing including material refinement and processing,
  3. battery material /component manufacturing and cell fabrication,
  4. battery pack and end use product manufacturing, and
  5. battery end-of-life and recycling.

This FOA aims to reach across both the midstream and downstream segments of the battery supply chain, supporting both midstream battery materials and component manufacturing, as well as subsequent cell manufacturing and end of life recycling. It is anticipated that the FOA would increase domestic battery manufacturing and create good-paying clean energy jobs. The overall FOA scope includes commercial facilities for battery-grade precursor materials, constituent materials, battery components, and cell manufacturing and recycling.

There are eight Areas of Interest (AOIs) in this FOA.

Areas of Interest 1-3

Consistent with the goals of the BIL the AOIs under 40207(b) intend to fund projects that promote the use of more clean energy, create new, good-paying jobs and lower costs for American families and workers by guiding the Nation towards a 100% carbon pollution-free electricity sector by 2035 and net-zero economy by 2050. Specifically, the AOIs within 40207(b) will ensure that the U.S. has a viable battery materials processing industry to supply the North American battery supply chain; to expand the capabilities of the U.S. in advanced battery manufacturing; to enhance national security by reducing the reliance of the U.S. on foreign competitors for critical materials and technologies; and to enhance the domestic processing capacity of minerals necessary for battery materials and advanced batteries.

The Battery Material Processing AOIs (1-3) will focus on commercial scale domestic separation of battery materials from extracted feed stocks for battery grade materials. The proposed materials must be capable of being used in an advanced battery that will be used in electric vehicles and/or electric grid applications.

  • AOI 1: Commercial-scale Lithium Separation from Domestic Sources – Domestic sources for processed and purified materials represent a critical gap within the domestic supply chain that is vastly underrepresented relative to the U.S. electric vehicle demand. This gap creates market uncertainty, loss of economic value added in high-capacity battery production and leaves the U.S. vulnerable to future supply chain disruptions. Addressing this critical gap in the supply chain provides an entry point for both mined and recycled battery materials, creates supply chain resilience, and adds to the overall value chain for the electric vehicle sector. Lithium material demand is expected to double from 2025 to 2030. The U.S. has extensive hard rock and brine reserves of lithium so there is extensive opportunity for production of domestic Lithium materials for battery production.
  • AOI 2: Commercial-scale Separation, Processing, and Recovery of Battery Critical Minerals (non-Lithium) – Battery critical material demand is anticipated to far outpace announced production. Access to high purity, processed critical minerals such as Nickel, Cobalt, Manganese, and others will be critical for supply chains to feed the growing downstream domestic cell manufacturing sector that is expected to reach 1 TWh by 2030.
  • AOI 3: Commercial-scale Domestic Production of Crucial Precursors for Battery Manufacturing – There are many advanced precursor materials that are necessary for lithium-ion based battery or other alternative advanced battery production. Securing supply of ultra-high purity, battery-grade precursor materials are critical for US battery material production and downstream battery manufacturing. Materials including silane gas for silicon anodes may be bottlenecks for crucial materials production.

Areas of Interest 4-8

Consistent with the goals of the Bipartisan Infrastructure Law (BIL), the AOIs under Section 40207(c) intend to fund projects that promote the use of more clean energy, create new good-paying jobs, and lower costs for American families and workers by guiding the nation towards a 100% carbon pollution-free electricity sector by 2035 and net-zero economy by 2050. Specifically, the AOIs within Section 40207(c) will ensure that the United States has a viable domestic manufacturing and recycling capability to support and sustain a North American battery supply chain.

The Battery Component Manufacturing and Recycling AOIs (4-8) will focus on commercial scale battery cell, cathode, separator, and silicon-based anode production facilities and demonstration manufacturing facilities for new manufacturing processes or techniques. The proposed technologies must be capable of being used in an advanced battery that will be used in electric vehicles and/or electric grid applications.

  • AOI 4. Commercial-scale Domestic Manufacturing of Battery Cathode and Anode Materials and Electrodes – Cathode and anode active materials and electrodes are critical materials and components needed for domestic battery manufacturing. Still, demand is expected to outpace U.S. capacity in the near term.
  • AOI 5. Commercial-scale Domestic Production of Electrolyte Salts and Electrolyte Solvent Manufacturing – A total of 99% of all electrolyte salt capacity in 2022 existed within the PRC. There is no active large scale electrolyte salt or electrolyte solvent production domestically. MESC selected an electrolyte salt project in 2022, which will be the U.S.‘s first lithium electrolyte salt production facility by 2025. Further development of electrolyte salt, solvent, and electrolyte mix facilities are needed to feed growing domestic cell production.
  • AOI 6. Commercial-scale Domestic Production of Cell Manufacturing for Specialized and Small Markets – While cell manufacturing capacity is expected to reach 750+ GWh by 2030, this capacity will nearly all be used to feed passenger car EV demand, leaving a gap in sourcing for other, smaller markets. Commercial-scale cell manufacturing for (1) non-light duty transportation (e.g., medium and heavy-duty vehicles, off-road, maritime, aviation, commercial/agricultural) and grid and stationary storage as well as (2) small and specialized markets such as power tools, agriculture and lawn equipment, defense, industrial and more are significantly limited in today’s domestic manufacturing landscape. As goals for clean energy and electrified landscape equipment increase demand to these specialized segments, and defense demand for battery capacity grows in parallel, this manufacturing gap continues to grow.
  • AOI 7. Commercial-scale Domestic Production of High-Capacity, Rechargeable Non-Lithium Based Battery Cell and Systems – Utilization of non-lithium-based systems may be necessary for full decarbonization of the U.S.’s grid. With greater duration requirements and less stringent density or weight constraints, non-lithium storage technologies may emerge as the most cost-effective solutions for these stationary needs. Supporting battery manufacturing facilities to produce the most commercially viable, technologically advanced, and manufacturing-ready systems will be critical in the coming decade for the stationary storage market.
  • AOI 8. Commercial-scale Domestic Manufacturing of Other Battery Cell and Systems Components (Open Topic) – Non-storage materials such as battery current collectors, solid state materials, binder, conductive additives, and coating precursor materials all play a critical role in meeting battery performance requirements. Advancement of these areas within industry provides an opportunity to advance domestic supply chain economic value added and resilience by creating more economic value added in battery manufacturing and supply chain stability. To enable these markets, the U.S. needs to use innovative materials and processing techniques to ensure global competitiveness. This AOI applies to all lithium-ion based battery or other alternative advanced battery components that are not covered under AOIs 4-7. A facility that processes and integrates multiple precursors is eligible.

All work for projects selected under this FOA must be performed in the United States.

Related Resources

Additional information is available on the Resources page.

Funding Details

Funding Source:
Funding Type:
Grant - match required
Total Amount Available:
Limit per Applicant:
Estimated Awards:
19 - 41

Applicant Guidance

The application process includes multiple submission phases: Concept Paper, and Full Application. Only eligible Concept Paper submissions may result in a Full Application. The Concept Paper Submission Deadline has passed.




Contact Information

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