The U.S. Department of Energy (DOE) Lithium-Ion Battery Recycling Prize is a competition aimed at encouraging the development of innovative processes that can efficiently capture and recycle 90% of lithium-ion batteries (LIBs) in the United States. This competition is designed to address challenges in collecting, sorting, storing, and transporting end-of-life LIBs, which are used in consumer electronics, electric vehicles, and other applications. Originally launched in 2019, the prize has awarded $5.5 million in cash over three phases. The continuation of the prize, supported by funds from the Bipartisan Infrastructure Law, will distribute an additional $7.4 million through new competitions aimed at scaling up successful concepts and inviting new participants.

The Breakthrough Competition is the first phase of this continuation and runs for one year. It includes two tracks: Track 1 for new competitors, and Track 2 for verified competitors who previously won in Phase III. In Track 1, new competitors are encouraged to propose innovative ideas that improve LIB recycling processes, with six teams eligible for cash prizes of up to $200,000. Track 2 invites Phase III winners to refine and scale their solutions, with four teams eligible for up to $800,000 in cash prizes and $100,000 in non-cash vouchers to support validation work. All participants will work closely with the American-Made Network, which provides access to national laboratories, facilities, and industry experts.

In addition to cash prizes, the competition supports teams with vouchers to use at approved Voucher Service Providers (VSPs) within the American-Made Network. These vouchers help participants access tools, equipment, and expertise to develop and demonstrate their recycling solutions. Verified competitors in Track 2 will receive these vouchers during the Breakthrough phase, while new competitors will be eligible in subsequent phases. The next stage, Phase IV, will last approximately 1.5 years and focus on demonstrating the real-world impact of the proposed recycling solutions. Up to $4 million in cash prizes will be distributed, including a $1 million grand prize and up to $100,000 in vouchers for each participating team.

Eligibility for the competition requires participants to be U.S.-based business entities or teams, and collaborations are encouraged. The program prioritizes diversity, equity, and inclusion, encouraging participation from historically underrepresented groups, minority-serving institutions, and businesses in disadvantaged communities. Competitors must submit detailed technical and market plans, and those advancing to the next stages will participate in live presentations and pitch events to demonstrate their progress to DOE representatives.

The competition also aims to support broader U.S. goals, such as building a robust and sustainable domestic LIB supply chain, reducing dependence on foreign sources for critical materials, and tackling climate change. By promoting innovation in battery recycling, the DOE hopes to enhance economic competitiveness and contribute to a more circular economy. The prize structure is designed to encourage a wide range of participants, from small startups to established companies, and emphasizes the need for scalable, market-ready solutions that can have a significant impact on LIB recycling rates.

Competitors must follow the official rules and guidelines, with submissions evaluated based on technical feasibility, market potential, and alignment with prize goals. Teams are required to provide regular updates and must comply with federal laws and regulations, including environmental compliance under the National Environmental Policy Act (NEPA).