On Could 2, 2022, The U.S. Division of Power (“DOE) issued by its Workplace of Manufacturing and Power Provide Chains (“MESC”) and Workplace of Power Effectivity and Renewable Power (“EERE”) Funding Alternative Announcement (“FOA”) No. DE-FOA-0002678 directing $3.1 billion from the Infrastructure Funding and Jobs Act (“IIJA”) to help a home battery provide chain, particularly, “new, retrofitted, and expanded business amenities in addition to manufacturing demonstrations and battery recycling.” A separate FOA was additionally introduced offering an extra $60 million for “second-life purposes for batteries as soon as used to energy EVs, in addition to new processes for recycling supplies again into the battery provide chain.”
DOE’s announcement described each FOAs as “key parts of the Administration’s whole-of-government provide chain technique to strengthen America’s vitality independence to cut back our reliance on competing nations and help the President’s purpose to have electrical automobiles make up half of all automobiles gross sales in America by 2030.”
Beneath
the $3.1 billion FOA, DOE anticipates 17-34 awards between $50 million and $400 million.
The FOA organizes 12 particular areas of curiosity into two broad grant classes:
- Battery Materials Processing
- Battery Part Manufacturing and Recycling
Candidates are required to submit a Letter of Intent by Could 27, with a full Utility Submission Deadline of July 1, 2022.
The separate $60 million recycling FOA requires submission of Idea Papers by Could 31 and a full Utility Submission by July 19, 2022.
DOE famous that the IIJA approved greater than $7 billion to strengthen the U.S. battery provide chain, from uncooked supplies to home manufacturing, together with different funds put aside for extra downstream battery storage deployment and EV charging infrastructure.
This week’s funding alternatives come on the heels of a various array of Govt Department actions to spur home funding in U.S. battery storage applied sciences for electrical automobiles and stationary vitality storage.
On April 18, the DOE’s Mortgage Assure Program introduced a conditional dedication to lend as much as $107 million to Syrah Applied sciences, LLC to increase its facility in Vidalia, Louisiana to ramp up manufacturing of pure graphite-based lively anode materials (AAM) for electrical automobiles. If the mortgage closes, it will likely be the primary Superior Expertise Automobiles Manufacturing (ATVM) program mortgage in over 10 years and the primary mortgage to an upstream provide chain entity reasonably than an electrical car producer.
In late March, President Biden invoked the Protection Manufacturing Act with respect to uncooked supplies for large-capacity batteries, together with lithium, nickel, cobalt, graphite, and manganese. The invocation requires the U.S. Division of Protection to help feasibility research to help the securing of a home provide of such supplies by “environmentally accountable home mining and processing; recycling and reuse; and restoration from unconventional and secondary sources, similar to mine waste.” Learn Lauren Loew’s protection of rising lithium costs and the dearth of U.S. capability.
Foley is continuous to comply with developments on this space. The Foley crew has vital expertise, information and experience associated to the battery and storage business, together with the automotive, manufacturing, provide chain, regulatory, IP, non-public fairness, tax fairness, mission finance, and public-private financing points associated to the identical, and we’re prepared to assist shoppers navigate this evolving panorama.
