search.noResults

search.searching

saml.title
dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
REGIONS AMERICAS


EVbatteries: will theUScatch up? F


US POLICY-MAKERS ARE FINALLY THROWING THEIR WEIGHT BEHIND BOOSTING THE COUNTRY’S LITHIUM-ION BATTERY CAPABILITIES. PATRICK MULHOLLAND REPORTS


or years, the US has shied away fromestablishing an industrial policy on the production of


lithium-ion batteries.However, in the face of stiff competition from China and the EU, American policy-makers are now voicing their support for domestic battery supply chains, which are crucial to themodern auto and energy industries. In 2015, Beijingunveiled its ‘Made in China 2025’ strategy, and Brussels


launched its ‘Strategic action plan on batteries’ some three years later. Since then, the US has only fallen further behind.


Playing catch-up On its current trajectory, American plants stand to deliver 486 gigawatt hours of battery capacity per year (GWh/y) by 2030, compared with China’s 2681GWh/y and the EU’s 778GWh/y, according to data provider Benchmark Mineral Intelligence. That is the equivalent of China building one new battery megafactory every week and the US building one every four months. Such is the scale of the challenge that


Simon Moores, managing director of price- reporting agency Benchmark Mineral Intelligence, says the US has been relegated to the position of “bystander” in the “global bat- tery arms race”. But it needs not be that way: despite holding 9% of the world’s lithium reserves, China dominates the mid-stream sup- ply chain, with 55% of global lithiumchemical compounds being processed andmanufactured within its borders. In a bid to wrest control of these industries,


the US Department of Energy published a 10-year national strategy in June 2021, to onshore key inputs — including some extrac- tion processes, as well as electrode and cell manufacturing — rather than focusing almost exclusively on downstreamend products.


Getting started “[US president Joe] Biden’s plan has certainly created very bullish sentiment for building a domestic lithium-ion economy in the US,” says Mr Moores. “For the first time, [we’re seeing] connective thinking fromthe top of the US gov- ernment that supply chains are crucial to build- ing the platform technologies of tomorrow.” That is good news for states with large auto-


motive sectors, particularly in the south. Outside of electric vehicle (EV) pioneer Tesla’s


62


Nevada gigafactory, the greatest inroads toward electrification are being made in Georgia and Tennessee. The cornerstone of Korean energy company SK Innovation’s plan to become a top three global EV supplier is its $2.6bn invest- ment in two battery plants based in Jackson County, Georgia, which will supply automakers Ford and Volkswagen. Meanwhile, US car manufacturer General


Motors announced in April that it will build a second $2.3bn battery plant in Spring Hill, Tennessee, as part of a joint venture with another Korean battery maker, LG Energy Solution. The new 2.8 million square-foot facil- ity is set to open in late 2023. “The US is one of the biggest EV batterymar-


kets in terms of its size, with the potential that it may grow at the fastest rate among major markets. This is largely due to the Biden admin- istration’semphasis on cleanenergy and the EV battery value chain,” a spokesperson for LG Energy Solution tells fDi.


Transforming an industry In Georgia, where 130,000 people work in the automotive sector, the impending transition to EVs has forced automakers to rethink their operations and supply chains, too. “We’re probably going to see more change


in this industry over the next 20 years than we’ve experienced in the previous 100 years,” explains commissioner Pat Wilson of the Georgia Department of Economic Develop- ment. “And [as a state], we want to be part of that process across the entire supply chain, fromthe refining of rare minerals to the assem- bly of the automobile.” Commissioner Bob Rolfe of the Tennessee


Department of Economic and Community Development, shares this view. “When we talk to automakers ... it feels like every single com- pany is going all-in on EVs,” he says.


Pickingupsteam Part of the reason for this is the rapid pace of innovation, both in terms of advancements in battery chemistry andits associated production factors. While Volkswagen has seen the energy density of lithium-ion batteries double since 2014, the International Energy Agency reports that the unit cost per kWh has fallen by 87% in the past decade. Yet lithium-ion cells come with their own


drawbacks. Battery packs are registered as haz- ardous goods and can be up to a quarter of the vehicle’sweight, rendering themunsuitable for


www.fDiIntelligence.com August/September 2021


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96