DOE Invests $50M in Innovative Battery Manufacturing in Massachusetts

On August 31, 2026, the U.S. Department of Energy (DOE) announced the awarding of a significant $50 million contract aimed at scaling domestic battery manufacturing capabilities. This project is led by Coreshell Technologies, with AM Batteries serving as a key subrecipient. The focus is to utilize innovative dry coating technology, establishing enhanced electrode and cell assembly capabilities in Billerica, Massachusetts. This aligns with the goals set forth in the Infrastructure Investment and Jobs Act, aiming for increased job creation, reduced manufacturing costs, and minimization of environmental impacts associated with traditional battery production methods.

The DOE's support for this project represents not only a substantial financial investment in the domestic energy infrastructure but also a strategic move towards enhancing U.S. competitiveness in energy storage technologies. By concentrating on innovative manufacturing processes, such as the dry coating method that eliminates energy-intensive and environmentally hazardous wet coating systems, contractors engaged in advanced battery production stand to benefit significantly. The dry coating process employed by AM Batteries allows for substantial reductions in capital expenditure (CAPEX) and operational expenditure (OPEX), enhancing the viability of domestic battery manufacturing against international competitors.

Notably, the project will contribute to the establishment of a resilient domestic battery supply chain, aiming to produce approximately 2 gigawatt-hours of electrode manufacturing capacity and 1.5 gigawatt-hours of cell assembly capacity. This scale of production highlights a pivot within the industry towards scaling up capabilities that support the electric vehicle supply chain and defense-related manufacturing requirements. The partnership between Coreshell Technologies and AM Batteries showcases how innovative technological integration can facilitate a more competitive battery industry in the U.S. market, particularly in the face of current reliance on foreign manufacturing.

As this contract emphasizes the need for domestic production, contractors, suppliers, and manufacturers in the battery sector are advised to assess their operational capabilities and explore avenues for involvement in upcoming projects backed by the DOE. The involvement of the Manufacturing Deployment Office (MDO) as a stakeholder adds additional relevance to this opportunity, underlining the federal commitment to fostering domestic manufacturing growth in the energy sector.

Hieu Duong, CTO of AM Batteries, expressed enthusiasm over the project, emphasizing, "The U.S. will not win by simply replicating existing technologies or the status quo; we must create fundamental advantages in manufacturing and materials. By combining AMB’s platform with Coreshell’s MGS anode technology, we can lower cost, improve performance, and help build a globally competitive battery industry in the West." This statement articulates the broader vision of the partnership, reinforcing the focus on innovation and competitiveness in the evolving landscape of battery production.

The implications of this award are profound not only in terms of job creation—over 100 domestic jobs—but also in establishing the U.S. as a leader in high-performance battery technology. With growing global demand for efficient and sustainable energy storage solutions, initiatives such as this are crucial for aligning domestic capabilities with international market requirements. As the federal government invests in such projects, private contractors should prepare for potential solicitations and opportunities that arise from enhanced funding and a focus on innovative solutions within the energy sector.