Encourage both governmental and private investment support for R&D for battery design innovation. Design innovation that enables disassembly and recyclability requires both significant funding and ecosystem-wide collaboration. Governments play a key role in providing the large-scale funding needed for R&D. Government investment can support technology innovation by funding fundamental science and engineering research and supporting these technologies as they scale out of the lab and progress towards commercial maturity. This can take the form of grants for early-stage innovation as well as loan guarantees, concessional financing and other investment modes which seek a return in support of later-stage technology. Providing lower-cost funding to battery manufacturers to support R&D for design innovation can incentivize manufacturers to address the necessary design changes discussed above without sacrificing performance. Government funding can most feasibly be combined with three other funding sources: –Philanthropic grants to fund early-stage research conducted by universities or other academic or non-profit entities. –Venture capital (including sustainability- focused investors) for seed funding to scale prototypes and pilots. –Corporate investment by companies to finance R&D from prototyping onwards. Tax incentives can encourage additional investment. Climate tech capital stack FIGURE 8 100%Grants Pre-seed Series A Seed Series BResearch 50% $5.3 million $5.3 million 50%GrantsEquityPilot 33% Equity33% $15.9 million $15.9 million $15.9 million 33%GrantsDebtFirst of a kind product 80% $84.6 million $21.2 million 20%EquityDebtRepeat 75% $2.1 million $0.6 million 25%GrantsEquityPrototype Source: Extantia80 Powering the Future: Overcoming Battery Supply Chain Challenges with Circularity 22

Powering the Future 2025