The U.S. Department of Energy (DOE) on August 20, 2026 announced $500 million in awards to strengthen America's critical mineral and battery supply chains, a move aimed at reducing dependence on concentrated overseas processing for the materials that power electric vehicles and grid storage.
The funding targets domestic mining, refining and recycling of battery-grade minerals such as lithium, nickel, cobalt and graphite, as well as cell and pack manufacturing capacity. Officials said the initiative is designed to shorten lead times, diversify sources and cushion automakers and battery makers against price shocks and export restrictions.
"A resilient battery supply chain is foundational to U.S. economic and energy security," a DOE spokesperson said, noting that the awards build on existing loan and tax-credit programs to bring processing capacity back onshore. Analysts said the step comes as global battery demand keeps climbing and as several producing nations tighten export rules for key inputs.
The announcement underscores a broader policy shift in Washington toward "friend-shoring" clean-energy supply chains, complementing private investment in gigafactories across the United States, Europe and other allied markets.
