Odd Lots This Is What's Hard About Building a US Domestic Battery Industry
Feb 19, 2024
Chris Burns, founder and CEO of Novonix, shares insights from his experience in the battery industry, having previously worked at Tesla. He discusses the challenges in creating a U.S. supply chain for electric vehicle batteries, highlighting the crucial role of materials like graphite. Burns explains the financial hurdles and the need for government incentives to compete with China's established market. The conversation emphasizes the necessity for strategic partnerships and skilled labor to advance domestic battery production and navigate the complexities of global competition.
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Processing Bottleneck
- The bottleneck in the battery supply chain is not sourcing raw materials, but processing them.
- China dominates processing, creating dependence even with diverse material sources.
China's Offtake Dominance
- China secures offtake agreements for natural graphite from projects outside its borders.
- This creates a dependence on China for financing, even for non-Chinese graphite sources.
Offshoring Battery Technology
- Key lithium-ion battery materials, like NMC and LFP, were invented in the US.
- Production was offshored to China due to cost concerns, leading to China's technological dominance.