WASHINGTON, Sept 20 (Reuters) - The U.S. Energy

Department said Friday it plans to award $3 billion to 25

battery manufacturing sector projects in 14 states as the Biden

administration works to shift the supply chain away from China.

The projects will increase domestic production of advanced

batteries and battery materials and follows the adoption of U.S.

EV tax credit rules to shift battery production and critical

minerals away from China.

The awards fund battery-grade processed critical minerals,

components, battery manufacturing, and recycling, and will

generate $16 billion in total investment for the projects and

support 12,000 production and construction jobs, the department

said.

"Mineral security is essential for climate security," said

White House climate adviser Ali Zaidi. "This sets us up to lead

on the next generation of battery technologies - from solid

state to other new chemistries."

Albemarle is set to receive $67 million for a

project in North Carolina to produce commercial quantities of

anode material for next-generation lithium-ion batteries, while

Honeywell ( HON ) is set to receive $126.6 million to build a

commercial-scale facility in Louisiana to produce a key

electrolyte salt needed for lithium batteries.

DOE plans to award Dow $100 million to produce

battery-grade carbonate solvents for lithium-ion battery

electrolytes, while Clarios Circular Solutions, which is

partnering with SK ON and Cosmo Chemical, is set to

receive $150 million for a project in South Carolina to recycle

lithium-ion battery production scrap materials from SK ON, the

battery unit of SK Innovation.

Currently most U.S. production scrap is exported by material

traders to be processed, mostly in China, DOE said.

DOE plans a $225 million award for production of lithium

carbonate by SWA Lithium, jointly owned by Standard Lithium ( SLI )

and Equinor ( EQNR ), using Direct Lithium Extraction

(DLE) technology. DOE also plans to award $225 million to

TerraVolta Resources to produce lithium from brine using DLE.

Revex Technologies, a partnership co-founded by Lundin

Mining ( LUNMF ), is set to receive $145 million for three

Michigan facilities to turn waste from the only operating U.S.

primary nickel mine to yield domestic nickel production for at

least 462,000 EV batteries yearly.

DOE plans to award $166 million to South32 Hermosa in

Patagonia, Arizona for the mining of high purity manganese

sulfate monohydrate (HPMSM) for electric vehicle battery

chemistries. Currently over 96% of HPMSM is made in China.

DOE also plans to award $166.1 million for another HPMSM

project in Louisiana for Element 25 ( ELMTF ) from manganese ore

sourced from an Element 25 ( ELMTF ) mine in Western Australia.

Group14 Technologies is to receive $200 million to develop a

U.S.-based silane manufacturing plant in Moses Lake, Washington.

The largest source of silane today is China, a material needed

for silicon batteries.

Birla Carbon is set to receive $150 million for

next-generation synthetic graphite that will not use material

from China.

DOE previously awarded $1.82 billion to 14 projects. DOE

said the projects selected must complete negotiations and an

environmental review before they are awarded.