Solmar Insights
Princeton NuEnergy has been awarded a $50 million grant by the U.S. Department of Energy to develop a $110 million direct battery recycling facility in Commerce, Georgia. The project will implement advanced recycling processes to recover battery-grade materials and strengthen U.S. supply chains for energy storage and electric vehicles.
Key figures
$50 million DOE grant
$110 million total project cost
3,000 tonnes annual recycling capacity
70 full-time manufacturing jobs
DOE funding and project overview
The Department of Energy’s $50 million grant comes through the Battery Materials Processing and Battery Manufacturing and Recycling program, part of a federal initiative to localize supply of critical minerals for energy infrastructure. Princeton NuEnergy is providing $60 million in direct cost share to reach a total capital outlay of $110 million for the Commerce, Georgia facility. The site will target a processing throughput of 3,000 tonnes per year of nickel-based lithium-ion battery manufacturing scrap. This scrap will be converted directly into battery-grade cathode active material, supporting the circularity needed for domestic cell manufacturing.
Unlike conventional battery recycling plants that break down spent cells into their raw mineral elements through hydrometallurgical or pyrometallurgical routes, Princeton NuEnergy’s process utilizes a low-temperature plasma-assisted separation technology. This approach is designed to rejuvenate spent cathode structures without subjecting them to the energy and chemical intensity of traditional recycling, thereby promising both efficiency and reduced environmental impact.
Process technology and output
The closed-loop facility is engineered to provide a much shorter turnaround for battery material processing. By recycling battery manufacturing scrap adjacent to where new batteries are produced, the process reduces turnaround time to roughly seven days. This is a material operational advantage for battery plants, which can traditionally face weeks of delay using international or elemental recycling routes.
By leveraging plasma-assisted separation, the plant is expected to cut the cost of cathode active material production by approximately 45 percent relative to materials derived from newly mined minerals. The output will be nickel-manganese-cobalt (NMC) cathode material, which is central to supply chains for contemporary energy storage systems and electric vehicles manufactured within the United States. This method aligns with federal supply chain security objectives and environmental goals.
Facility scale and future expansion
The Commerce facility is projected to create 70 full-time manufacturing jobs and 100 construction jobs in the region during its buildout. Beyond the initial commercial demonstration, Princeton NuEnergy intends to use this site as a scalable blueprint. The long-term ambition is to expand with up to 10 additional privately funded production lines, potentially scaling overall processing to 30,000 tonnes per year by 2035.
Each incremental line could further enhance domestic materials resilience, helping reduce dependence on overseas battery component processing. The investment and operational model serve as a reference for future recycling initiatives in the United States, facilitating localized material loops for battery manufacturing and minimizing international logistical dependencies.
Federal policy context
This grant comes as part of the third round of awards under the DOE’s Battery Materials Processing and Battery Manufacturing and Recycling programs, both operated from the Manufacturing Deployment Office and the Office of Critical Minerals and Energy Innovation. These programs are underpinned by recent U.S. infrastructure legislation designed to shift critical mineral processing and battery manufacturing away from foreign hubs and back to domestic shores.
The federal initiative has committed hundreds of millions of dollars to advance new recycling techniques, particularly those that achieve closed-loop cycles and keep critical materials like lithium, cobalt, and nickel in U.S. control. By refining direct recycling, the DOE aims to cut both costs and the environmental footprint of the national battery supply chain, improving security and lifecycle management of materials central to the growth of utility-scale energy storage and transportation electrification.
Market implications for storage and EVs
Strengthening the domestic recycling supply chain through projects like Princeton NuEnergy’s stands to impact both cost structures and capital formation for U.S. battery manufacturing. Immediate access to high-quality recycled cathode material could decrease input costs, enhance supply predictability, and accelerate project timelines for storage integrators and electric vehicle manufacturers working in the Southeast and nationally.
As the industry scales toward higher production volumes for grid storage and passenger vehicles, the role of regionalized recycling in stabilizing feedstock prices and reducing exposure to global market swings will become increasingly critical. If Princeton NuEnergy’s demonstration achieves successful integration with battery manufacturing, the model may attract further investment and replication, deepening the competitive position of U.S.-based suppliers within the global energy transition.
What this means for buyers
Battery recycling and cathode material supply capacity in Georgia now offer a cost-competitive domestic option for storage and EV supply chains. The $50 million DOE grant and seven-day turnaround promise reduced lead times and lower material costs for battery projects using U.S.-produced stock. Buyers can prioritize procurement and investment strategies that favor closed-loop, domestically sourced materials for projects entering the pipeline this quarter.
Reporting via the original publisher
