U.S. battery startups have found renewed support from the defense sector following the elimination of battery and EV incentives under the One Big Beautiful Bill, which had previously undercut future demand. The Trump administration has acknowledged batteries as an essential component of modern life and is leveraging national security to justify recent decisions. The Department of Energy recently announced a $500 million grant program aimed at bolstering the domestic battery supply chain, with much of the funding directed towards startups.
Defense applications of lithium-ion batteries are increasingly being discussed in various sectors, including drones, torpedoes, infantry radios, and fighter jets. Coreshell, a battery materials startup, has received a $50 million award from the DOE to expand manufacturing for its metallurgical silicon anode material. Other companies like Lilac Solutions and Nth Cycle have also secured significant grants to build processing facilities and refine lithium compounds used in battery production. Despite challenges faced by the automotive industry due to EV setbacks, defense applications continue to play a crucial role, with the U.S. Defense Logistics Agency purchasing $200 million worth of batteries annually as recently as 2021.