The U.S. Department of Energy has selected seven critical mineral processing, battery manufacturing, and recycling projects to receive a combined $500 million in federal grants, adding a new layer to the Trump administration’s broader effort to reduce dependence on China-centered supply chains.
DOE announced the awards on August 20 through its Office of Critical Minerals and Energy Innovation. The projects are intended to expand domestic capacity for lithium extraction, cobalt refining, battery-material recycling, electrolyte production, and advanced anode manufacturing.
The grants follow an August 7 White House event at which President Donald Trump met with mining executives and announced more than $2 billion in mining and mining-related projects, along with more than $180 million in investments for mining schools and workforce development. Several news organizations described the overall package as roughly $3 billion.
Together, the announcements show that the administration is using grants, loans, trade measures, and workforce programs to address supply-chain vulnerabilities that affect transportation, electricity storage, data centers, manufacturing, and defense technologies.
Seven projects will receive the $500 million
DOE’s latest awards are part of the third round of its Battery Materials Processing and Battery Manufacturing and Recycling programs. The programs were created under Section 40207 of the Infrastructure Investment and Jobs Act, also known as the bipartisan infrastructure law enacted in 2021.
The department divided the awards into two tiers. Three projects will receive $100 million each, while four projects will receive $50 million each.
| Project recipient | Primary focus | Location identified by DOE | Federal award |
|---|---|---|---|
| Waterleaf P1 HoldCo, a Lilac Solutions company | Direct lithium extraction and battery-grade lithium carbonate | Great Salt Lake, Utah | $100 million |
| Formation Holdings US, doing business as Jervois | Battery-grade cobalt sulfate refinery | Location to be determined | $100 million |
| Nth Cycle | Refining black mass from batteries and manufacturing scrap | Southeastern U.S. | $100 million |
| Princeton NuEnergy | Recovery and rejuvenation of nickel-containing cathode material | Commerce, Georgia | $50 million |
| Arcanum Ventures | Battery-grade ethylene carbonate production | U.S. Gulf Coast | $50 million |
| Elevated Materials | Ultra-thin lithium-metal films and prelithiated materials | Location to be determined | $50 million |
| Coreshell Technologies | Silicon-anode electrodes and lithium-ion battery cells | San Leandro, California | $50 million |
Source: U.S. Department of Energy, August 20, 2026 announcement and program project descriptions.
Grant allocation by award tier
$100 million awards
Lilac Solutions ████████████████████
Jervois ████████████████████
Nth Cycle ████████████████████
$50 million awards
Princeton NuEnergy ██████████
Arcanum Ventures ██████████
Elevated Materials ██████████
Coreshell Technologies██████████
The award amounts represent the federal share of selected projects. They do not necessarily mean that every project is fully financed, under construction, or ready for commercial operation. Recipients typically must complete additional technical, financial, environmental, and administrative steps before grant funds are distributed.
The projects target different parts of the supply chain
The award package is significant because it addresses several stages of the battery supply chain rather than concentrating only on mining.
Waterleaf P1 HoldCo, a Lilac Solutions company, plans to build a commercial direct lithium extraction and refining facility on the northeastern shore of the Great Salt Lake. DOE says the project will produce battery-grade lithium carbonate and return processed brine to the lake with no net water loss. The first phase is intended to double current U.S. lithium production, according to the department.
The Jervois project would establish domestic capacity to refine cobalt into battery-grade cobalt sulfate. Cobalt is used in some lithium-ion battery chemistries and remains important in superalloys and other industrial applications. The project’s location has not yet been identified publicly in DOE’s project description.
Nth Cycle’s project focuses on the midstream portion of the supply chain. Its planned Southeastern facility would process “black mass,” a material recovered from end-of-life batteries and manufacturing scrap. The facility is expected to produce high-purity metals and battery-grade materials using the company’s electroextraction technology.
That recycling component matters because supply security does not depend only on new mines. Battery manufacturing scrap and retired batteries can become secondary sources of lithium, nickel, cobalt, and other materials. However, recycling volumes depend on collection systems, battery chemistry, transportation costs, processing economics, and the number of batteries reaching the end of their useful lives.
The remaining four projects focus on materials and components used farther downstream.
Princeton NuEnergy plans to build a demonstration facility in Georgia to recover and rejuvenate nickel-containing cathode material from battery manufacturing scrap. Arcanum Ventures would produce battery-grade ethylene carbonate, a chemical used in lithium-ion battery electrolytes, along the Gulf Coast.
Elevated Materials plans to scale production of ultra-thin lithium-metal films and prelithiated materials intended to support higher-energy and faster-charging batteries. Coreshell Technologies would establish U.S. production capacity for silicon-anode electrodes and lithium-ion cells in San Leandro, California.
The mix reflects a policy objective broader than “mine more.” A domestic supply chain also requires refining, chemical processing, electrode production, cell manufacturing, and recycling.
Why China remains central to the policy debate
The administration’s argument is based on the high geographic concentration of critical mineral processing and battery production.
The International Energy Agency has reported that China leads global refining for most strategic energy minerals and controls more than 80% of capacity in many battery supply-chain stages. China also dominates production of battery anode materials and lithium iron phosphate cathode materials.
The United States remains exposed to import disruptions in several minerals. The USGS Mineral Commodity Summaries 2026 states that imports supplied more than half of U.S. apparent consumption for 54 nonfuel mineral commodities in the latest reporting year. Natural graphite, which is widely used in battery anodes, was listed at 100% net import reliance.
| Supply-chain pressure point | Why it matters |
|---|---|
| Lithium extraction and refining | Supports battery cells for vehicles, storage, electronics, and defense systems |
| Cobalt refining | Provides a domestic source of a battery and specialty-alloy material |
| Graphite alternatives | Silicon and lithium-metal materials could reduce dependence on conventional graphite anodes |
| Electrolyte chemicals | Prevents dependence on imported chemical inputs even when cells are manufactured domestically |
| Battery recycling | Recovers materials from scrap and retired batteries while reducing demand for new feedstock |
| Commercial-scale processing | Connects laboratory or pilot technologies to industrial production |
The IEA has also warned that supply concentration can create risks even when global mineral resources are sufficient. A disruption at the mining, refining, transportation, or export stage can affect prices and manufacturing schedules.
That does not mean the United States can eliminate international trade from its energy system. Minerals are globally traded commodities, and domestic projects will still operate within international markets. The practical goal is diversification: increasing U.S. production and processing while maintaining access to allied and other non-Chinese suppliers.
A continuation of the administration’s mining strategy
The August 20 DOE grants came shortly after the White House mining roundtable.
According to the White House fact sheet, that package included federal support for battery anodes, rare-earth-free magnets, scandium, graphite, boron, tantalum, niobium, and mining education. The Department of Energy committed $100 million to America’s mining schools, while other federal agencies announced additional workforce and project investments.
The administration has also used executive actions, trade authorities, and national-security arguments to support domestic mineral production and processing.
At the same time, the policy transition has created uncertainty for companies that received awards under the previous administration. E&E News reported that Energy Secretary Chris Wright previously canceled several Biden administration awards under the same battery materials and manufacturing programs, which were funded by the 2021 infrastructure law.
That history creates two competing considerations for project developers. New awards may align federal support with current national priorities, but changes between administrations can affect the predictability of grant programs. Companies and investors will likely continue to examine award agreements, milestone requirements, permitting timelines, cost-sharing obligations, and the possibility of future policy changes.
Implications for the wider energy system
Critical mineral policy affects more than electric vehicles.
Batteries are increasingly connected to grid operations, backup power, microgrids, renewable generation, and data-center development. Utilities and large electricity customers are evaluating storage to manage peak demand, improve power quality, and provide flexibility as electricity consumption rises.
Data centers are an important part of this discussion. Artificial intelligence and cloud computing are increasing demand for reliable electricity and backup systems. Battery production and recycling projects could support those systems, although batteries will not replace the need for generation, transmission, natural gas, nuclear power, hydroelectricity, or other resources that provide firm and flexible electricity.
Defense technologies create another demand center. Batteries, advanced materials, magnets, electronics, and specialty alloys are used in communications equipment, unmanned systems, aerospace platforms, and other military applications. A supply disruption could therefore affect both commercial manufacturing and national security procurement.
The projects may benefit U.S. mineral processors, battery manufacturers, technology developers, construction contractors, workers, and communities that host new industrial facilities. Potentially negative effects include competition for water, electricity, land, and skilled labor; permitting disputes; commodity-price volatility; and the risk that some projects do not reach commercial scale.
Federal grants can reduce early-stage financial risk, but they cannot guarantee competitive production. Projects must still demonstrate reliable technology, obtain permits, secure private capital, build customer relationships, and compete with established international suppliers.
What to watch next
The next important milestones will be more detailed award agreements, environmental and construction approvals, private-sector cost sharing, and evidence that the selected technologies can move from demonstration to commercial operation.
Readers should also watch whether DOE announces additional changes to earlier awards, how the administration applies trade and national-security authorities, and whether the new projects attract long-term buyers from automakers, utilities, data-center operators, and defense contractors.
The August 20 announcement does not end China’s role in global critical mineral markets. It does, however, demonstrate a more targeted federal approach to supply-chain security: support domestic extraction where feasible, build processing capacity, develop alternative battery materials, recycle more of the material already in circulation, and train the workforce needed to operate the system.
For continuing analysis of energy policy, markets, and industrial strategy, visit SHALE Magazine.
Sources
- U.S. Department of Energy announcement on the $500 million awards
- DOE Battery Materials Processing Grants program
- DOE Battery Manufacturing and Recycling Grants program
- E&E News coverage of the awards
- White House fact sheet on August 7 mining investments
- IEA Global Critical Minerals Outlook 2025
- USGS Mineral Commodity Summaries 2026
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