Sen. Chuck Schumer, D-N.Y., said the funding would go to what’s expected to be the largest supplier of recycled materials for lithium-ion batteries in the region.

“That means the heart of hundreds of thousands of electric vehicles, which will soon dominate our roads, will be made with battery components from right here in Rochester,” the senator said.

While the United States does contain the metals and minerals needed for the energy transition away from fossil fuels, just mining the resources is an expensive endeavor and only a handful of countries have proven success.

The Paris-based International Agency estimates that the Democratic Republic of Congo currently produces 70% of the world’s cobalt, used in lithium-ion batteries, while Australia, Chile and China account for 90% of the total global production of lithium.

But developments are advancing quickly. Lithium company Ioneer secured a conditional $700 million federal loan in January to develop the Rhyolite Ridge lithium-boron mineral deposit in Nevada. The company believes the mine could support the development of enough batteries to power 400,000 electric vehicles per year.

Li-Cycle said it already has infrastructure in place to develop tens of thousands of tons of material used in batteries, but believes its hub in Rochester will help lay a foundation for a stronger domestic core.

“As a sustainable pure-play battery material recycling company, we expect the Rochester Hub will position Li-Cycle as a leading domestic producer of recycled battery-grade materials for accelerating electrification demand to address climate change and secure energy independence,” Li-Cycle co-founder, president and CEO Ajay Kochhar said.