{
  "id": 2597240,
  "title": "US battery startups have found a lifeline in defense",
  "url": "https://urgent.news/2026/08/22/us-battery-startups-have-found-a-lifeline-in-defense",
  "topic": "tech",
  "section": "Tech",
  "published": "2026-08-22T15:20:00.000Z",
  "source": {
    "name": "TechCrunch",
    "slug": "techcrunch",
    "url": "https://techcrunch.com/2026/08/22/us-battery-startups-have-found-a-lifeline-in-defense/"
  },
  "original_language": "en",
  "account": "As U.S. battery startups grapple with the aftermath of the One Big Beautiful Bill, which slashed EV and battery incentives, they have discovered a new ally in the defense sector. This unexpected lifeline is helping power essential applications, from cutting-edge drones to vital infantry radios and fighter jets. Despite the administration's strong opposition to EVs, it has recognized the inescapable role of batteries in modern life, often leveraging national security as justification for recent decisions.\n\nThe Department of Energy recently announced a $500 million grant program to strengthen the battery supply chain within the United States. This initiative aims to reduce reliance on foreign sources, fortify national security, and advance American energy dominance. A significant portion of the funding is allocated to startups, with defense applications of lithium-ion batteries being actively discussed.\n\nA spokesperson for Coreshell, a battery materials startup, revealed that defense applications are being actively considered. The company recently secured $50 million from the DOE to expand its manufacturing capabilities for metallurgical silicon anode material. Other startups have also received substantial grants, including Lilac Solutions, which received $100 million to build a facility capable of producing 5,000 metric tons of lithium carbonate annually by 2028. Similarly, Nth Cycle secured $100 million to construct a facility for refining black mass from recycled lithium-ion batteries, yielding lithium and nickel compounds that can be utilized in new battery production.\n\nMegan O'Connor, co-founder and CEO of Nth Cycle, confirmed that the defense sector is a clear demand driver, although the automotive sector remains a significant player as well. While the automotive industry's growth remains anticipated in the years to come, defense will continue to be a substantial consumer of batteries. Although exact figures are scarce, the U.S. Defense Logistics Agency already spent $200 million on batteries annually in 2021, dwarfed only by the automotive industry's projected $18 billion investment in battery manufacturing this year alone.\n\nAs battery companies are well aware, and the Trump administration seems to tacitly acknowledge, the future is electric. However, the timing of this transition remains uncertain. In the interim, soldiers and drones still require lightweight, reliable batteries from domestic sources. After the One Big Beautiful Bill dismantled battery production incentives, the Pentagon may have been compelled to seek alternative solutions. These recent DOE grants may signify an admission that attempts to undermine the American EV industry went too far.",
  "summary": "U.S. battery startups pulled in $500 million in grants from the Department of Energy, throwing a lifeline to an industry that was on the ropes after EV incentives were slashed.",
  "key_points": [
    "US battery startups seek defense sector support after EV incentives cut",
    "DOE grants $500 million to strengthen US battery supply chain",
    "Defense applications for lithium-ion batteries being actively considered"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}