Defense Department Awards $12.9 Million to Increase Production of Active Materials for Lithium Iron Phosphate CathodesContracts for Sept. 25, 2024Biden Administration Announces[...]

The Department of Defense (DoD) announced today a $12.9 million award via the Defense Production Act Investments (DPAI) program to Nano One Materials Corp. (Nano One). The award will help optimize and increase Nano One's production of active materials for lithium iron phosphate (LFP) cathodes at its Candiac, Québec and Burnaby, British Columbia facilities.

The effort, which uses funds appropriated by the Inflation Reduction Act (IRA), directly bolsters the National Defense Industrial Strategy's objective to expand support for domestic production of critical materials in key supply chains, as well as the IRA's goals of increasing domestic energy production and promoting clean energy. Canada has been considered a "domestic source" for DPA funds since 1992.

"Shoring up domestic production capabilities across key nodes of the large-capacity battery supply chain is essential for meeting growing battery demands," said Dr. Laura Taylor-Kale, Assistant Secretary of Defense for Industrial Base Policy (ASD(IBP)). "This award is another important advance towards increasing the availability of safer, lower-cost, and longer-lasting battery materials, which will strengthen U.S. national security."

"Canadian businesses are seizing job-creating opportunities delivering secure and reliable supplies of critical minerals to our allies, while building up the North American battery supply chain," said Honorable Jonathan Wilkinson, Minister of Energy and Natural Resources Canada. "Today's announcement at the Nano One facility in Candiac, Quebec, further cements Canada's place as a reliable global supplier in sustainable battery production with our American partners while complementing over CAD $20 million in investments and support by the Government of Canada. We will continue to advance collaboration with the United States, including through the Energy Transformation Task Force and the Joint Action Plan on Critical Minerals Collaboration."

With these funds, Nano One will demonstrate commercial-scale production of LFP cathode active materials, critical precursors in the large-capacity battery supply chain. LFP has considerable advantages for military applications, including high-power, advantageous safety characteristics, and a high cycle life. Additionally, all LFP inputs can eventually be sourced in North America, further reducing reliance on foreign sources.

This is the latest of 60 awards made by the DPAI program across multiple areas, totaling $602 million since the beginning of Fiscal Year 2024. DPAI is overseen by the OASD(IBP)'s Manufacturing Capability Expansion, and Investment Prioritization (MCEIP) directorate.

For more information on MCEIP, please visit: https://www.businessdefense.gov/ibr/mceip/index.html

About the Office of the Assistant Secretary of Defense for Industrial Base Policy (OASD(IBP))

The OASD(IBP) works with domestic and international partners to forge and sustain a robust, secure, and resilient industrial base enabling the warfighter, now and in the future.