Electric vehicle supply chains in the Chattanooga area saw a jolt Wednesday when two companies building major production plants were selected for nearly $300 million in federal grant money.
Novonix, which began operation at a plant on Chattanooga’s riverfront late last year to produce synthetic graphite for electric vehicle batteries, was picked by the U.S. Department of Energy to receive $150 million for a factory in the planning stages.
Also, Piedmont Lithium, which in August unveiled plans to build a nearly $600 million plant in Etowah, Tennessee, to make lithium hydroxide for batteries, was selected for a $141.7 million department grant.
The two are among the first projects funded by President Joe Biden’s Bipartisan Infrastructure Law to expand domestic manufacturing of batteries for electric vehicles and the electrical grid, according to the Energy Department. The $1.2 trillion package passed in November 2021 with no support from Tennessee’s Republican legislators.
Piedmont Lithium Chief Executive Keith Phillips said in a telephone interview the funds will accelerate the planned project in Etowah, which is believed to be the biggest-ever single investment in McMinn County.