U.S. Department of Energy allocates $43 million to advance battery technology research and development

The U.S. Department of Energy recently announced a new grant programme that will allocate $43 million to advance research and engineering on advanced batteries, funded by the DOE's Vehicle Technologies Office (VTO). The VTO has identified five priority areas for the grant programme, with specific total subsidy amounts.

In the field of conventional batteries, VTO plans to allocate $10 million in funding to improve the safety, life and performance requirements of 12V lead-acid batteries. It also hopes to reduce their manufacturing costs.

In the area of battery packs and electric vehicles, the subsidy will aim to promote the development of safety strategies for cells, modules, packs, vehicles or structures to reduce the problem of thermal runaway in electric vehicles. For this, VTO will allocate $3.9 million.

In the area of cell manufacturing, the VTO plans to allocate $12.5 million in funding to promote engineering research and development to reduce manufacturing costs at the electrode, cell or battery pack level by at least 30% and increase production by at least 50%.

For next-generation lithium batteries, lithium batteries using silicon-based anode materials are favoured by the VTO, which will fund research, manufacturing and testing of silicon-based lithium battery projects that meet the performance requirements for EV batteries and are eligible for funding, i.e., that meet the relevant U.S./allied manufacturing ratios and that do not include a foreign entity of concern (FEOC). The total grant amount is $12.5 million.

Finally, VTO expects to promote the development of high energy density cathode materials that exceed the energy density of current high nickel cathode materials and are eligible for funding. VTO will allocate $4.05 million in this area.

Eligible projects can be submitted on the EERE Exchange and applications for grants are due by 31 October this year. The shortlist will be released in March 2025 and negotiations will be completed and agreements signed between March and June next year.

SMM believes that these grants can promote U.S. companies and university laboratories to continue to maintain the advantage of technological research and development in this field. However, the United States in the field of electric vehicles is difficult to change in the short term. Its lithium battery production and manufacturing costs are too high, and most domestic enterprises lack engineering technology and experience. North American lithium battery industry chain is also currently incomplete. Considering the uncertainty brought by the new government coming to power next year, it is still doubtful whether the funds can be implemented.

Author: Yaoning Liu | Associate Analyst, Lithium Battery | London Office, Shanghai Metals Market

Email: edenliu@smm.cn