What are the gaps in the lithium battery supply chain?
One of the most important gaps in the U.S. lithium battery supply chain is the lack of domestic equipment and tooling suppliers that make machinery used in the manufacture of lithium batteries and battery materials. Manufacturing equipment makers control vital know-how in lithium battery technology.
Why is the US relying on a global lithium battery supply chain?
The United States relies (and, without intervention, will continue to rely) on a global lithium battery supply chain that is highly vulnerable to disruption, as seen in Figure 1. Two issues account for this vulnerability. First, global manufacturing capacity for batteries and battery materials is highly concentrated.
What should the US government do about the lithium battery market?
The U.S. government must take actions to enhance the expected returns on financial investments in U.S.‐based lithium battery supply chain‐related projects (e.g., battery materials, components, cells, or manufacturing equipment) and reduce the perception of demand uncertainty in the U.S. battery market.
How big is the lithium battery market?
The market for lithium battery cells in the U.S. is growing rapidly and expected to reach $55 billion per year by .1 Yet it is estimated that under current conditions U.S. companies and U.S. workers will capture less than 30% of the value of cells consumed domestically.
What is the National Blueprint for lithium batteries?
The National Blueprint for Lithium Batteries, produced by the FCAB in , outlined a vision for the U.S. lithium battery supply chain. It states:
What policy developments are affecting the lithium battery supply chain?
The past year has seen many policy developments with implications for the U.S. lithium battery supply chain. The most significant are two laws, the Infrastructure Investment and Jobs Act of (IIJA) and the Inflation Reduction Act of (IRA). The provisions of these two laws align with many of the recommendations made in this report.
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Lithium-ion Battery Storage Technical Specifications
Customizable template for federal government agencies seeking to procure lithium-ion battery energy storage systems (BESS).
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Access to reliable and clean electric power is a key requirement for building up the lithium battery supply chain in the United States. Although the U.S. has abundant, inexpensive land available