US battery startups have found a lifeline in defense
U.S. battery startups are increasingly turning to the defense sector for funding and demand as EV-related incentives face political headwinds. The Department of Energy has awarded $500 million in grants to these companies to bolster domestic supply chains and national security.
Why it matters
This shift highlights how national security priorities are becoming a primary driver for industrial policy and clean energy investment in the U.S.
U.S. battery startups hit a rough patch when the One Big Beautiful Bill eliminated battery and EV incentives , undercutting a chunk of future demand. But recently, they’ve found a lifeline in the defense world, helping to power everything from drones and torpedoes to infantry radios and fighter jets.
The Trump administration, despite its open disdain for EVs, acknowledges that batteries are an inescapable part of modern life. And like many things in Washington these days, it’s leaning on national security as justification for its recent decisions.
The latest comes from the Department of Energy, which announced Thursday that it is awarding $500 million in grants to bolster the battery supply chain in the United States. The program aims to “reduce reliance on foreign sources, bolster national security, and advance American energy dominance.” Much of the money went to startups.
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