As the demand for EVs continues to rise, the need for batteries to power them will also increase. In order to meet this demand, the US battery industry has been working to increase production capacity and bring more battery assembly to North America. Four of the world’s five largest battery makers, CATL, Panasonic, LG Energy Solutions, and SK, have announced plans for production in the US, Mexico, and Canada, with BYD also considering building a battery plant in the US.
However, the steady decline in lithium-ion battery prices has reversed in 2022, with soaring battery materials prices causing automakers and other battery-dependent businesses to focus on affordability rather than efficiency. This has led to the increased use of lithium iron phosphate (LFP) cells, which are less expensive but offer “good enough” performance.
The US battery industry has also been working to diversify beyond lithium-ion batteries, with companies such as QuantumScape, Enevate, and Sila Nanotechnologies developing solid-state batteries, which offer higher energy density and faster charging times. These companies have received significant investment from automakers, including Volkswagen, Toyota, and BMW, in an effort to bring solid-state technology to market.
In conclusion, the US battery industry has made significant strides in 2022 to meet the growing demand for EVs, but there are still challenges to overcome, including the need to increase production capacity and the rising cost of battery materials. The push to diversify beyond lithium-ion batteries and the development of solid-state technology offer promising solutions for the future of the industry.
