U.S. Battery Startups Turn to Defense Sector for Support
Following the removal of battery and EV incentives by the One Big Beautiful Bill, U.S.-based battery startups have found new opportunities in defense applications. The Trump administration is supporting this shift through a $500 million grant program from the Department of Energy aimed at strengthening domestic battery supply chains for national security reasons. Several startups received significant funding: Coreshell was awarded $50 million to expand production of silicon anode materials, Lilac Solutions secured $100 million to build lithium extraction facilities in Utah, and Nth Cycle obtained $100 million to develop recycling technology. These grants are helping companies meet demand from the defense sector for lightweight batteries used in drones, radios, torpedoes, and fighter jets. While EVs remain a long-term growth area, their immediate future is uncertain due to policy changes. The automotive industry still plans significant battery investments this year, but the shift toward defense underscores how national security concerns are reshaping U.S. energy strategy.
Topics: batteries energy security grants national defense startups