This solicitation aims to fund the establishment of a battery pilot manufacturing line capable of manufacturing and testing a variety of emerging lithium-ion based technologies. This solicitation supports the approved Electric Program Investment Charge 2021–25 (EPIC 4) Investment Plan’s strategic objective to enable successful clean energy entrepreneurship across California.
Project Focus
Minimum Pilot Line Capabilities and Project Requirements
The intent of the pilot line is to support and accelerate the development and commercialization of innovative battery technologies. The pilot line must have the ability to conduct all stages of next-generation lithium-ion battery cell manufacturing through the provision of the appropriate facilities, equipment, and on-site staff. The pilot line must accommodate stages including, but not limited to, mixing, coating, drying, pressing, slitting, stacking/winding, filling, and formation. The pilot line should also focus on producing cells that incorporate technologies beyond what is currently commercially produced. This includes, but is not limited to, lithium metal anodes, silicon anodes, novel electrolyte formulations, and emerging cathode chemistries. Applicants should strive to propose a pilot line with the capability to support as many emerging battery technologies as feasible, given the funding available from this solicitation and match provided.
In addition to focusing on emerging battery technologies, applicants must submit proposals for a battery pilot manufacturing line that fully support the following features at a minimum:
- Manufacturing capacity to produce at least 10,000 battery cells per year.
- Capability to produce battery cells in pouch and cylindrical formats.
- Battery cell testing capabilities, including performance characterization, battery cycling, abuse testing, and failure mode analysis.
- Facility location in a low-income or disadvantaged community. Please see section I.J. of this solicitation manual for tools to identify these communities.
- A project team that includes both a labor organization and academic institution.
- A plan for how the project will grow workforce development efforts locally and throughout the California battery industry.
Enhancing Capabilities
In addition to the minimum capabilities described above, applicants are highly encouraged to consider these enhancing capabilities for the pilot line and to justify their reasoning for inclusion:
- Ability to manufacture non-lithium-ion electrochemical technologies, including sodium-ion and lithium-sulfur technologies. This pilot line is not expected to support flow battery production.
- Ability to conduct testing for non-lithium-ion batteries.
- Ability to conduct testing at the battery pack and module level.
Additional Required Responses
In addition to the minimum and enhancing capabilities described above, applicants must also provide responses in their Project Narrative to the following items:
Establishing the Pilot Line
- Describe the overall capabilities of the pilot line, including manufacturing capacity, and battery technologies and formats supported.
- Describe the location of the proposed facility and any renovation, utility improvements, and construction activities, along with associated timelines that will be needed to prepare the facility for the project.
- Describe the ownership/lease relationship with the proposed site.
- Describe the proposed layout of the facility, including descriptions of all intended uses (manufacturing space, office space, storage, classroom, etc.) and their associated size (e.g. square footage for each of the proposed uses).
- Describe your approach to having the pilot line up and running by mid-2026. Alternatively, if you anticipate a different timeline or approach, describe that timing, approach, and justification.
- Describe your approach to sourcing the manufacturing equipment for the pilot line and the expected associated lead time. Include contingencies for delays or other challenges.
- Describe your approach to ensuring that all out-of-country purchases comply with applicable state and federal laws including federal export control laws prohibiting certain activities between the United States and foreign companies.
- Describe your approach to maximizing use of a domestic supply chain supporting battery manufacturing.
- Describe your approach to partnering with industry to ensure that the outputs of the pilot line (battery cells and testing results) meet industry standards.
- Discuss your approach to engaging with the Lithium Valley Vision and the broader battery value chain in California.
Operating the Pilot Line
Describe your overall approach to operating the pilot line. At a minimum, your response should describe:
- Breadth of services offered to battery innovators,
- Expected length of engagement for the various services, and
- Approach for recruiting users to the pilot line.
- Describe your approach to safeguarding and protecting the intellectual property of the battery innovators who will use the facility.
- Describe your approach for recycling and/or disposing of waste materials as sustainably as possible.
- Describe your approach to establishing a sustainable ongoing operation model for the pilot line, demonstrating its effective continuation beyond the grant term. At a
- minimum, describe the proposed revenue model, upstream feedstock sourcing, and staffing plan, both during and beyond the grant term.
Leveraging and Expanding Partnerships
Describe your approach to leveraging the facility to support workforce development in partnership with labor groups and academic institutions. In this section, applicants should describe, at a minimum:
- Approach to developing a curriculum for a workforce development program that supports this pilot line and domestic battery manufacturing in California more broadly.
- How the training program will be operationalized at the pilot line facility, including classroom training and hands-on time on the pilot line.
- Partnerships with private industry that can serve as employers for those trained at the pilot line on an ongoing basis.
- Describe your approach to leveraging the facility to support a broader battery manufacturing ecosystem in California, including plans for connecting to and supporting Lithium Valley efforts and relevant state and federal initiatives.
- Describe how the pilot line will provide benefits to the local community. Include discussion of planned community outreach, engagement activities, and partnerships with community-based organizations.
FUNDING
There is up to $25,000,000 available for grants awarded under this solicitation. The minimum funding amount for each project is $25,000,000. The maximum funding amount is $25,000,000.
Match Funding Requirement - Applications must include a minimum 20 percent total match share.
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