US battery startups have found a lifeline in defense

The Department of Energy awarded $500 million in grants to U.S. battery startups, with Coreshell receiving $50 million for silicon-anode production, Lilac Solutions $100 million to build a Utah lithium-carbonate plant, and Nth Cycle $100 million for black-mass recycling. These funds target defense applications such as drones, torpedoes, infantry radios and fighter jets, reflecting the Pentagon’s $200 million annual battery purchases and the sector’s shift toward national-security-driven demand.