3 ASX-listed companies rallying on Biden's US$2.8bn EV battery cash splash

President Joe Biden has awarded US$2.8bn in grants for the electric vehicle supply chain under the Bipartisan Infrastructure Law.

The grants are allocated via the Department of Energy to companies across 12 states for companies engaged in battery manufacturing as well as the production of critical minerals including graphite, nickel and lithium.

Three ASX-listed companies have been selected for grants to fund emerging projects set to hit production status between 2023-2025.

Syrah Resources: Graphite

Syrah Resources (ASX: SYR) received a grant of up to US$220m to support the potential expansion of the Vidalia active anode material facility in Louisiana. The company's shares rallied 10.6% as the market opened to a four year high.

A final investment decision for Vidalia was approved in February 2022 and expected to reach production status in the third quarter of 2023.

A definitive feasibility study is currently underway to expand its production from the initial 11,250 tonnes per annum of anode production to 45,000 tonnes.

Syrah said it will negotiate and finalise a binding funding agreement with the US Department of Defence for a grant.

Syrah share price chart

Novonix: Battery materials and technology

Novonix (ASX: NVX) said its Anode Materials division was selected to enter negotiations to receive US$150m in grand funding to expand the production of its US-based, high-performance, synthetic graphite anode materials.

In late August, Novonix said it is on track to reach annual production capacity of 10,000 tonnes per annum of synthetic graphite in 2023, with further plans to increase annual production capacity to 40,000 tonnes in 2025 and 150,000 tones in 2030.

Novonix shares rose 20.2% as the market opened. This follows an 18.7% rally on Wednesday.

Novonix share price chart

Piedmont Lithium

Piedmont Lithium (ASX: PLL) was selected for a US$141.7m grant which will support the construction of the company's US$600m Tennessee Lithium project. The company's shares rallied 10.1% in early trade.

The Tennessee Lithium project is targeting 30,000 tonnes of lithium hydroxide production per annum. The feedstock will come from offtake agreements with Sayona Mining (ASX: SYA) and Atlantic Lithium (ASX: A11). Piedmont is targeting construction in 2023 and production by 2025.

"Over 80% of lithium hydroxide production today occurs in China," noted CEO Keith Phillips.

"This grant will accelerate the development of the Tennessee Lithium project as a world-class lithium hydroxide operation, which is expected to more than double the domestic production of battery-grade lithium hydroxide in the United States."

Piedmont Lithium share price chart