CALSTART’s PowerForward Battery Manufacturing Grant Program Announces Notice of Proposed Awards

Three recipients will split a total of $43 million in grant funds; project plans are underway

CALSTART, a leading global clean transportation nonprofit, announced the proposed awardees on September 9, 2024, for the first-round grant solicitation. The news follows an evaluation of 14 applications that were submitted during the solicitation period in April.

The three recommended recipients are:

• Sparkz, Inc.
• Sepion Technologies Inc.
• South 8 Technologies, Inc. [in partnership with Nanotech Energy, Inc.]

“CALSTART is excited to announce the awards for the PowerForward program, which will create high-quality jobs in our local communities, grow critical elements in the battery supply chain, and foster innovation and collaboration throughout the state,” said Phoebe Bisnoff, CALSTART’s Battery Manufacturing Program Manager.

The recipients have big plans for using the funds, pending execution of the award.

Sepion Technologies released a statement earlier this month announcing plans to build a cutting-edge lithium-ion battery separator manufacturing facility in the Capitol Innovation District with the grant.

“Sepion’s new West Sacramento facility will generate high-tech jobs requiring specialized skills and targeted workforce development. By partnering with respected local organizations, we aim to streamline the process and foster a workforce essential for advancing the nation’s clean energy infrastructure,” said Peter Frischmann, Ph.D., CEO and Co-Founder, Sepion Technologies, Inc.

Sparkz celebrated the news of earning PowerForward funds with the grand opening of its Sacramento manufacturing facility (pictured left); this site will serve as the project location for Sparkz’s PowerForward project.

“Through programs like PowerForward, Sparkz is able to accelerate the scale-up of its battery material manufacturing to meet growing domestic customer demands as programs like the Inflation Reduction Act and Bipartisan Infrastructure Law provide tax credit opportunities to domestic battery consumers,” said Dr. Sanjiv Malhotra, Founder and CEO, Sparkz.

Finally, South 8 will expand manufacturing of its LiGas® electrolyte in San Diego. Together with partner Nanotech Energy, South 8 will then integrate a LiGas injection system into Nanotech’s battery cell production facility in Chico to provide LiGas battery cells for zero-emission vehicles and other applications. 

“California leads the U.S. in EV adoption, so it’s logical that we should also lead in the production of EV batteries, components, and materials. PowerFoward enables South 8 to expand manufacturing of our LiGas electrolyte, a key battery component that today is almost exclusively produced outside of the U.S.” said Reid Heffner, Vice President of Strategy, South 8 Technologies.

Background:

PowerForward is California’s equity-first, market-accelerating, ZEV battery-manufacturing infrastructure grant program that is funded by the California Energy Commission and implemented by CALSTART, in partnership with New Energy Nexus, Lawrence Berkeley Lab, and Yunev. It aims to lead the equitable transition to a green economy by setting a standard for domestic battery manufacturing that focuses on environmental impact, community engagement, and workforce development.  

In April 2024, CALSTART released a grant solicitation and application packet that offered funds for in-state manufacturing of batteries and related components for zero-emission vehicles (ZEVs). The proposed projects were required to fit into one of two major categories: Cathodes (Cathodes; Cathode Active Materials) or Batteries (Material Processing; Cell Components; Cell Manufacturing; Module, Packs, and Battery Management System; Remanufacturing & Recycling). Both categories offer a maximum of $17.5 million in funding. After an evaluation of 14 applications, three were recommended to receive funding.

 

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