Electrive writes that the funding is especially focused on supporting the projects that can lower the cost of manufacturing for batteries used in the automotive industry, while also improving their safety and durability.

This effort is also meant to support the country's goals to have a fully net-zero transport system by 2050. Up to 12.5 million USD will be offered to companies that can reduce the costs associated with the production of EV-grade cells by at least 30% compared to the latest-generation batteries.

Testing and developing alternative silicon-based batteries for automotive applications, which could offer higher capacities and be more affordable than lithium-ion batteries, could also receive up to 12.5 million USD in funding. Companies and startups that want to receive funding can send their applications until October this year and selected projects can expect to be financed between March and June next year.

Last year in November, the DOE also provided 3.5 billion USD worth of subsidies for the domestic production of batteries, aiming to establish a country-wide supply chain.