Strategic Economic Development Program

The Strategic Economic Development Program is a state-funded initiative administered by the Illinois Department of Commerce and Economic Opportunity (DCEO). This opportunity, listed under NOFO ID 3219-3118, aims to support capital improvements for an electric vehicle component manufacturer located in Chicago, Illinois. The initiative reflects the state's commitment to expanding the research, development, and production of lithium metal batteries, aligning with Illinois’ broader goals in electric vehicle and renewable energy manufacturing. Applicants must be business entities that are physically located in Chicago and currently hold an executed Tier 1 Reimagining Energy and Vehicles (REV) agreement with DCEO. This highly targeted eligibility ensures alignment with existing state-supported energy manufacturing initiatives. Additionally, the selected applicant must be involved in lithium metal battery production. Only one award is anticipated under this NOFO, with an estimated total program funding of $2,000,000. Funds are to be used for capital investment activities, specifically machinery and equipment costs associated with establishing an industrial facility for lithium metal battery development. The grant may reimburse pre-award costs incurred as early as June 12, 2025. Reimbursements will be disbursed in two phases: 50% after submission of documented capital expenditures and 50% after all expenditures, including match funds, are exhausted. The grant period runs from September 15, 2025 through August 31, 2026, with a one-year extension option if necessary. The grant application process requires submission of a Uniform Grant Application, Uniform Budget, Conflict of Interest Disclosure, Mandatory Disclosure, and a program-specific application. This application must describe the project’s goals, provide a detailed budget of machinery and equipment needs, and explain how the facility will support lithium battery production in Illinois. Applications must be submitted electronically by September 26, 2025 at 5:00 PM. Applications will undergo a merit-based review, with scoring based on criteria across three categories: need, capacity, and quality. Points are awarded for location in Chicago, having a REV Tier 1 agreement, being located in a designated zone, and for lithium battery production. The program also enforces compliance with prevailing wage laws, the Illinois Works Jobs Program, environmental review requirements, and audit protocols. Indirect costs are not allowed. Matching funds at a 1:1 ratio are required. The primary agency contact is Lisa Clemmons Stott (lisa.clemmonsstott@illinois.gov), and the program is classified as a capital grant with no technical assistance sessions scheduled. Grant documents, including the full NOFO and application materials, are available through the DCEO grant portal.

Applicants must ensure they are registered and in good standing in GATA and SAM.gov and provide a detailed narrative connecting the project to state goals.