The U.S. Department of Energy could soon issue hundreds of millions of dollars in federal grants for advanced battery manufacturing, having cleared several proposals through environmental review last month.

Manufacturers including Johnson Controls Inc. (JCI) and Dow Kokam LLC, a joint venture between Dow Chemical Co. (DOW) and Townsend Kokam LLC, are seeking grants under the $2 billion Electric Drive Vehicle Battery and Component Manufacturing Initiative. A representative of the DOE didn't immediately respond to the question of when the agency expects to issue the grants.

The largest project to clear the review under the National Environmental Policy Act is the proposed expansion of advanced lithium-ion battery facilities by Milwaukee's Johnson Controls Inc. and Oregon-based Entek International LLC. The DOE is considering providing $299.2 million in a grant to the companies to expand facilities in Holland, Mich., Milwaukee, and Lebanon, Ore. The total cost of the expansions would be $599.5 million, according to the DOE.

The Dow Kokam LLC joint venture is seeking $161 million in a cost-sharing grant, as well as an additional loan, the size of which hasn't been yet determined, under the DOE's Advanced Technology Vehicle Manufacturing Incentive Program. The money will go toward a new facility in Midland, Mich., to make advanced lithium-polymer batteries. The capacity would be enough to power 60,000 fully electric and hybrid vehicles, operating with an average 20-kilowatt hour battery system, according to the DOE.

Another proposal that passed the environmental review is from Enerdel Inc., which is seeking a $118.5 million grant, as well as other loans from the DOE, for expanding its battery cell manufacturing facility in Indiana. Enerdel is the battery subsidiary of Ener1 Inc. (HEV).

Smaller projects that cleared the review include one by BASF Catalysts LLC, a New Jersey-based unit of German chemicals giant BASF SE (BAS.XE), for a $49.2 million project, about half of which would be provided by the DOE. The project is a new manufacturing plant in Elyria, Ohio, to produce cathode materials used in lithium-ion batteries. The capacity would be sufficient to supply 20,000 to 100,000 plug-in hybrid electric cars.

Toda America Inc., which is seeking $35 million for a $70 million project, also cleared the review. The subsidiary of Japan's Toda Kogyo Corp. (4100.TO) is planning a new factory to produce cathode materials used in lithium-ion batteries in Calhoun County, Mich. The total production would be sufficient to supply batteries for 450,000 hybrid electric vehicles, or 125,000 plug-in hybrid electrics, according to the DOE.

The environmental review is undertaken after an application is deemed substantially complete, the applicant's financial and technical abilities have been established, and once the DOE has begun its due diligence process.

-By Yuliya Chernova, Dow Jones Newswires; Yuliya.chernova@dowjones.com