The Department of Energy (DOE) announced the availability of up to $63 million to enable state and local governments to expand battery recycling and modernize American manufacturing by making cutting edge technologies like advanced sensors and modeling more accessible to small- and medium-sized manufacturers (SMMs).
Administered by DOE’s Office of Manufacturing and Energy Supply Chains (MESC), this funding opportunity advances next-generation tools and resources to achieve the ambitious goal of a net-zero economy by 2050 and will help revitalize and strengthen America’s global leadership in manufacturing.
"America’s revolutionary clean energy future requires a modernized manufacturing sector, and the Biden-Harris Administration is helping us get there,” said U.S. Secretary of Energy Jennifer M. Granholm. “The funding announced today will equip small- and medium-sized manufacturers with cutting edge technologies to improve operations efficiency and expand battery recycling, removing barriers to advancement and bolstering the nation’s competitive standing.”
Battery recycling
Batteries power our daily lives. Collecting spent batteries and recovering critical minerals like cobalt, lithium and graphite from battery recycling is a cost effective and sustainable way to source domestic materials to produce more batteries. Working with states and local governments, this funding will create new recycling programs for recycling and collection points that are easily accessible to consumers, whether at a retail location or a community site such as a library.
This funding opportunity includes $41 million for the second phase of $50 million in total provided by the Bipartisan Infrastructure Law for state and local government battery recycling programming. In the first phase, DOE selected battery recycling projects for negotiation that are expected to catalyze over $14.4 million in public/private investment. This second phase will boost state and local governments' ability to support state-wide and local battery recycling programs. DOE is seeking projects in partnership with state and local governments to create new or enhance existing battery collection, recycling, and reprocessing projects, with an additional focus on awareness, education, and community benefits.
Smart manufacturing
In addition to working with state and local governments to enhance battery collection, DOE is also partnering with states to modernize the domestic manufacturing sector by enhancing access to cutting edge technologies.
Smart manufacturing refers to the use of emerging and advanced technologies to increase the efficiency of the traditional manufacturing process. By adopting smart manufacturing technologies, firms can lower costs, increase energy efficiency and performance, reduce material demand, and improve product quality, making American firms more competitive in a global marketplace. However, the majority of SMMs currently do not employ smart manufacturing or high-performance computing technologies, largely due to high upfront costs and lack of access to training resources. Through this program, DOE is working to close that gap.
This funding opportunity includes $22 million towards the second phase of the $50 million total State Manufacturing Leadership Program. In the first phase, DOE awarded 12 projects for states to expand or create programs that will ultimately support over 3,500 SMMs in implementing smart manufacturing technologies and practices, including accessing high-performance computing resources. In this second phase, DOE aims to expand this state-led support to reach even more SMMs. DOE seeks applications that facilitate SMM access to resources such as technical assistance, training, facility assessments, apprenticeships, and direct financial assistance to implement smart manufacturing improvements. Competitive funding awards of up to $2 million per project to state entities will be made over an up-to three-year period. Applicants will be required to provide a cost share of at least 23.1% of the award.
This program advances the Biden-Harris Administration’s Justice40 Initiative, which sets the goal that 40 percent of the overall benefits of certain federal investments in climate, clean energy, clean transportation and other areas flow to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. Projects under this funding opportunity must also include meaningful community and labor engagement, advance diversity, equity, inclusion, and accessibility; and invest in America’s workforce.
