Shifting US Automotive Battery Circular Value Chain

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Abstract:

Shifting US Automotive Battery Circular Value Chain

At the annual colloquiums in Brussels and Bordeaux, we presented research on the US automotive value chain developing to support EV production and domestic battery manufacturing in the US. The dramatic growth of this value chain was largely spurred by policy and promises of government funding and incentives at national, state, and local levels. The automakers announced investments in every level of the value chain, from critical minerals and processing, to battery precursors and components, to battery recycling to create minerals to resupply the value chain. 

Clearly, US policy has changed dramatically with the new administration. OEM strategies have shifted as a result of this policy, EV sales, and other pressures. This presentation updates the US policy driving the industry turnaround, as well policy related to critical minerals and the battery value chain. The effects of policy changes are shifting OEM strategies for vehicle electrification and battery joint ventures, and leading to cancelled EV and battery projects. We will discuss these strategies as well as describing the US battery production and the value chain as it shifts towards different industries, mainly energy storage.

Finally, this research will revisit an example of a battery circular value chain from the previous colloquiums and investigate what developments have occurred with the new policy and resulting strategy.  It follows the investments at each step of the value chain to identify progress to support automotive or other industries.  We will use a case study of a US manufacturer to understand how much of the progress toward developing a domestic circular value chain to support EVs has been stalled, cancelled, or diverted to other industries.