Battery Materials Processing, Manufacturing & Recycling Grants: Round 3

KEY INFORMATION

Opportunity Number: DE-FOA-0003585

Agency: Department of Energy, Office of Critical Minerals and Energy Innovation (CMEI)

Total Program Funding: $500,000,000

Cost Share: 50%

 

PROGRAM OVERVIEW

The Department of Energy (DOE), through its Manufacturing Deployment Office (MDO), which is part of the Office of Critical Minerals and Energy Innovation (CMEI), is issuing a new Notice of Funding Opportunity for the development of demonstration and commercial facilities aimed at increasing the domestic supply of critical minerals and materials for advanced batteries. The primary objective of the program is to enhance supply chain resilience within the United States and to decrease dependency on foreign supply chains by up to 15% by the year 2030, specifically for key critical materials and advanced battery components, by investing in manufacturing projects that:

• Process key critical materials from raw feedstocks prioritizing lithium, nickel and cobalt;

• Recover critical materials from end-of-life batteries and manufacturing scrap, prioritizing black mass production and recovery of graphite, nickel and cobalt; as well as rare earth materials (if included in the recycled battery chemistry); or

• Manufacture components needed for advanced batteries, prioritizing synthetic graphite, cathode active materials and specialty metals (copper, aluminum, lithium).

Projects awarded under this NOFO will be required to follow a four-phased structure for managing scope, schedule, deliverables and budget. These activities will be further defined during award negotiations and subsequent negotiations between phases. DOE will prioritize proposals that have a higher likelihood of completion within the 36-month expected timeframe.

 

TOPIC AREAS 

Topic Area 1: Domestic Critical Materials Processing from Raw Feedstocks

Total Available Funding: $200,000,000

Award Range: $50,000,000 - $100,000,000

Cost Share: 50%

Number of Awards: 2 - 4

The objective of the Domestic Critical Materials Processing from Raw Feedstocks area of interest is to create U.S. processing capacity for critical minerals and materials for use in advanced batteries. Raw feedstocks may include domestic or international feedstocks, including primary and secondary ores, clays, tailings, and brines (geothermal and oilfield). This topic area consists of two sub-topics: Topic 1a: Demonstration Scale Projects, and Topic 1b: Commercial Scale Projects. Topic 1a applicants should propose:

• Projects that include the processing of raw products to produce battery materials utilized in advanced batteries

• Projects focused on domestic capacity development

• Projects focused on the development of a large-scale demonstration project

Topic 1b applicants should propose:

• Projects that include the processing of raw products to produce battery materials utilized in advanced batteries

• Projects focused on domestic capacity development

• Projects focused on the development of a new commercial facility, or to retrofit, retool, or expand an existing facility

Final produced materials can include:

• Mineral concentrates

• Hydroxides

• Sulphate

• Other relevant forms for use in advanced batteries

TA 1 Priority Minerals and Production Goals: 

• Lithium: 10,000 – 25,000 tons/yr

• Nickel: 5,000 – 15,000 tons/yr

• Cobalt: 2,000 – 3,000 tons/yr

TA 1 Priority Minerals and Production Goals:

• Projects that produce minerals, including lithium, nickel, and cobalt;

• Projects that can demonstrate market traction by securing feedstock supply and offtake agreements;

• Projects that produce multiple critical minerals and/or materials; and

• Projects focused on process innovations that lower production costs or improve yield rates.

 

Topic Area 2: Domestic Critical Materials Recycling

Total Available Funding: $100,000,000

Award Range: $50,000,000 - $100,000,000

Cost Share: 50%

Number of Awards: 1 - 2

The objective of the Domestic Critical Materials Recycling topic is to construct, retrofit, or expand facilities to create United States recycling capacity for battery materials from end of-life batteries, off-specification/recalled/rejected batteries, and/or battery manufacturing scrap. TA 2 applicants should propose:

• Projects developing facilities which will be focused on the recycling of batteries for the production of materials of use in advanced batteries

• Projects focused on domestic capacity development

• Projects focused on the development of demonstration, or the development of a new commercial facility, or to retrofit, retool, or expand an existing facility for the production of battery materials.

Final produced materials can include:

• Black mass

• Mixed hydroxide precipitates

• Battery-grade sulphates

• Other relevant forms for use in advanced battery sectors

TA 2 Priority Minerals and Production Goals: 

• Black Mass: 45,000–90,000 tons/yr

• Graphite: 5,000–10,000 tons/yr

• Nickel, Cobalt, Mixed pCAM: 10,000–40,000 tons/yr

• Copper: 5,000–10,000 tons/yr

• Rare Earths: 2,000–5,000 tons/yr

TA 2 Priority Minerals and Production Goals:

• Projects that maximize full value-chain material production by co-producing multiple critical minerals and/or materials

• Projects focused on the recycling of minerals or materials including graphite, nickel, cobalt, and rare earth elements (if included in the chemistry of the battery)

• Projects that can demonstrate market traction by securing feedstock supply and offtake agreements; Projects that can demonstrate competitiveness under current market conditions

• Projects focused on process innovations that lower production costs or improve yield rates

 

 

Topic Area 3: Domestic Battery Materials & Component Manufacturing

Total Available Funding: $200,000,000

Award Range: $50,000,000 - $100,000,000

Cost Share: 50%

Number of Awards: 1 - 4

The objective of the Domestic Battery Materials and Component Manufacturing topic area is to construct new commercial-scale facilities or retrofit, retool, or expand existing commercial-scale facilities to create domestic manufacturing capacity for strategic battery components and technologies including cells intended for both energy and specialized applications, such as defense. TA 3 applicants should propose:

• Projects developing facilities focused on the manufacturing of advanced batteries and/or advanced battery components

• Projects focused on domestic capacity development

• Projects focused on the development of demonstration, or the development of a new commercial facility, or to retrofit, retool, or expand an existing facility for the production of battery materials.

Relevant manufactured forms can include:

• Active material powders 

• Coated electrodes

• Thin film metal current collectors

• Battery cells

• Other manufactured forms relevant to advanced batteries

TA 3 Priority Minerals and Production Goals:

• Aluminum Components: 10,000–20,000

• Copper Components: 5,000–10,000

• Synthetic Graphite Anode: 10,000–20,000

• Nickel-Based Cathode: 5,000–10,000

• Iron Phosphate-Based Cathode: 8,000–15,000

• Battery Cells: 2 GWh

TA 3 Priority Minerals and Production Goals:

• Projects focused on particular vulnerabilities for U.S. battery supply chains, which include synthetic graphite, cathodes active materials, and specialty metals manufacturing (copper, aluminum, lithium) needed for batteries

• Projects that can demonstrate market traction by securing feedstock supply and offtake agreements

• Projects that can demonstrate competitiveness under current market conditions

• Projects focused on process innovations that lower production costs or improve yield rates.

 

 

KEY DATES 

Release Date: March 13, 2026

Concept Paper Due Date: March 27, 2026

Full Application Due Date: April 24, 2026

 

RESOURCES 

View the full FOA on the DOE Funding Opportunity Exchange.

Read the DOE's official press release here.