As domestic demand for critical materials continues to grow, the state of the North American battery supply chain, or lack thereof, has come into sharper focus.
While the high import dependency of the materials needed for many industrial processes threatens the overall economy, the battery material supply chain risk is especially acute.
It is the barometer to measure the effectiveness of critical mineral policy. Solving the current battery supply chain challenges will not only provide a blueprint to de-risk future technology development, but it will also achieve energy security.
There is little to no domestic mine production of battery materials and corporate ownership over the extraction and processing of materials abroad, and this has put the fledgling domestic battery industry in a highly vulnerable position.
As the North American EV market continues to grow and more vehicles, that better suit consumer preferences, are introduced at better price points, securing supply chains to avoid production disruption needs to be a priority.
Supportive critical material policies under the IRA and the OBBB may provide direction, but strategic investments, such as those by the Department of Defense in MP Materials and GM in Lithium Americas, will be key.
The battery supply chain is highly dislocated, and the industry will need to pivot their procurement strategies while increasing production efficiencies.
Lower commodity prices is no longer the cost reducing driver it once was, and future reductions will only be achieved by having through securing supply chains.
As domestic demand for critical materials continues to grow, the state of the North American battery supply chain, or lack thereof, has come into sharper focus. While the high import dependency of the materials needed for many industrial processes threatens the overall economy, the battery material supply chain risk is especially acute. It is the barometer to measure the effectiveness of critical mineral policy. Solving the current battery supply chain challenges will not only provide a blueprint to de-risk future technology development, but it will also achieve energy security.
There is little to no domestic mine production of battery materials and corporate ownership over the extraction and processing of materials abroad, and this has put the fledgling domestic battery industry in a highly vulnerable position. As the North American EV market continues to grow and more vehicles, that better suit consumer preferences, are introduced at better price points, securing supply chains to avoid production disruption needs to be a priority.
Supportive critical material policies under the IRA and the OBBB may provide direction, but strategic investments, such as those by the Department of Defense in MP Materials and GM in Lithium Americas, will be key. The battery supply chain is highly dislocated, and the industry will need to pivot their procurement strategies while increasing production efficiencies. Lower commodity prices is no longer the cost reducing driver it once was, and future reductions will only be achieved by having through securing supply chains.
With over 30 years of experience in analyzing highly scientific industries, Kimberly connects the dots between all the elements of the battery supply chain to provide stakeholders with a holistic approach to the development of this crucial industry. She’s supported projects for numerous clients and is available to support your organization for projects, big and small.
