$500M Defense Lifeline Lands After EV Incentives Are Gutted
Washington cut EV support, then handed battery firms $500 million as drones, torpedoes and fighter jets exposed America's need for homegrown battery power.
Summary
The Trump administration gutted battery and EV incentives through the One Big Beautiful Bill, then handed U.S. battery startups a $500 million lifeline. Department of Energy grants seek less foreign dependence, while drones, torpedoes, infantry radios and fighter jets need American batteries.
Coreshell gets $50 million for metallurgical silicon anode manufacturing after adding defense-linked ADS Ventures. Lilac Solutions lands $100 million for a Great Salt Lake plant producing 5,000 metric tons of lithium carbonate yearly by 2028. Nth Cycle gets $100 million to refine recycled battery black mass into lithium and nickel compounds. Defense Logistics Agency purchases ran $200 million annually in 2021, but automotive battery manufacturing spending is expected near $18 billion this year.
Positives
- $500 million in DOE grants gives domestic battery manufacturing fresh oxygen.
- Lilac’s Utah plant targets 5,000 metric tons of lithium carbonate annually by 2028.
- Nth Cycle can turn recycled black mass into fresh lithium and nickel compounds.
Risks & concerns
- The One Big Beautiful Bill eliminated battery and EV incentives, weakening future demand.
- Defense’s $200 million annual battery spend in 2021 trails autos’ expected $18 billion this year.
- Automakers expect growth, but it has slipped further into the future.
