Infrastructure Investment and Jobs Act (IIJA) Section 40207 Battery Materials Processing Battery Manufacturing and Recycling Grant Programs

The U.S. Department of Energy (DOE), through its Manufacturing Deployment Office (MDO), has announced a new funding opportunity titled "Infrastructure Investment and Jobs Act Battery Materials Processing & Battery Manufacturing and Recycling Grant Programs" (DE-FOA-0003585). With an anticipated total funding of approximately $500 million, this program is made possible by Section 40207 of the Infrastructure Investment and Jobs Act (IIJA). It is designed to catalyze the development of domestic infrastructure for battery material processing, battery component manufacturing, and battery recycling in order to strengthen the U.S. supply chain for critical minerals. These efforts align with broader federal goals to enhance national security, spur domestic economic growth, and reduce reliance on foreign sources for strategically vital materials like lithium, nickel, cobalt, and graphite. The grant supports three key topic areas: (1) Domestic Critical Materials Processing from Raw Feedstocks, (2) Domestic Critical Materials Recycling, and (3) Domestic Battery Materials and Component Manufacturing. Each area targets specific supply chain vulnerabilities with distinct objectives and award structures. Topic Area 1 seeks to fund projects that establish processing capacity for critical materials sourced from raw feedstocks; Topic Area 2 focuses on recycling facilities that reclaim battery-grade materials from manufacturing waste and end-of-life batteries; Topic Area 3 supports the development or expansion of commercial-scale facilities manufacturing components for advanced batteries. Award sizes vary between $50 million and $100 million per project, depending on the scale (demonstration vs. commercial) and the topic area. All projects must include at least a 50% cost share from non-federal sources. Applicants must be domestic entities, including institutions of higher education, non-profit and for-profit private organizations, and state or local governments. Foreign entities may only participate with a formal waiver request and must demonstrate that their involvement is in the best interest of U.S. economic and national security interests. All work must be performed within the U.S. unless a foreign work waiver is granted. Projects will proceed through a phased structure—initial planning and permitting, followed by construction, commissioning, and demonstration—culminating in full-scale production within a 36-month period of performance. This phased design includes Go/No-Go decision points between each budget period to ensure project milestones are met. The application process begins with an optional but encouraged Letter of Intent due by March 27, 2026, followed by full application submissions due by April 24, 2026, at 5:00 PM Eastern Time. Interested applicants must register in multiple systems including SAM.gov and DOE’s eXCHANGE portal. Applications must be submitted through eXCHANGE and must include a range of materials such as technical volumes, detailed budgets, project management plans, and environmental impact documentation. Applications not meeting eligibility or responsiveness criteria will be deemed ineligible for review. Evaluation of applications will involve multiple review layers, including responsiveness checks, merit reviews, and final selection based on DOE priorities and programmatic factors. Selected applicants will be notified in the second quarter of 2026, with awards anticipated in the third quarter. DOE may require the submission of additional documentation during negotiations, including intellectual property strategies, security protocols, and supply chain plans. The DOE also retains substantial involvement rights through the award period, which may include technical direction and Go/No-Go authority. All inquiries regarding this funding opportunity must be directed to the dedicated program inbox at [email protected]. An informational webinar is scheduled for March 26, 2026, to assist applicants. This grant does not fund mining or extraction activities, land acquisition, or projects that fall below the minimum funding thresholds. This opportunity is part of a broader initiative to position the United States as a global leader in the battery sector by 2030.

Projects must include clear Go/No-Go milestones; cost share must be non-federal and documented; foreign work or participation requires waivers and detailed justification.