Governor JB Pritzker Directs $140 Million for Illinois EV Battery Recycling and Cathode Reprocessing

NORMAL, Ill. — Governor JB Pritzker and Illinois Department of Commerce and Economic Opportunity (DCEO) Director Kristin Richards announced on Monday the awarding of $140 million in state manufacturing tax credits and capital grants through the Reimagining Energy and Vehicles (REV Illinois) incentive framework to construct two commercial battery recycling plants and cathode precursor manufacturing hubs in Normal and Decatur.

The investment establishes a closed-loop automotive supply chain in Central Illinois, enabling automotive manufacturers to recycle battery packs from electric buses, delivery vans, and passenger vehicles directly within the state, recovering battery-grade critical minerals without relying on foreign mining and refining operations.

Circular Economy for Electric Vehicle Manufacturing The $140 million state incentive package finances:

• Closed-Loop Hydrometallurgical Recycling Plants: $85 million for zero-thermal hydrometallurgical processing equipment extracting battery-grade lithium carbonate, nickel sulfate, and cobalt sulfate at 95% purity.
• Cathode Precursor Synthesis Facility: $40 million to manufacture engineered cathode powders directly feeding nearby Midwestern EV assembly plants.
• Hazardous Materials Transport Safety & Training: $15 million partnering with Heartland Community College and Illinois fire protection districts for battery handling safety.

"Illinois is leading the nation in building a comprehensive, sustainable electric vehicle ecosystem from assembly lines to component recycling," Governor JB Pritzker said during a ceremony in Normal. "By investing $140 million to build state-of-the-art battery recycling facilities in Central Illinois, we are creating over a thousand high-wage manufacturing jobs, reducing carbon emissions, and securing our domestic supply of critical minerals."

Building trades unions, regional economic development corporations, and automotive industry leaders commended the state's aggressive clean manufacturing policy, noting that co-locating battery recycling alongside vehicle assembly lines cuts freight logistics expenses by over 25%.