Full Title: Friendshoring the Lithium-Ion Battery Supply Chain: Battery Cell Manufacturing
Author(s): William Alan Reinsch, Meredith Broadbent, Thibault Denamiel, and Elias Shammas
Publisher(s): Center for Strategic and International Studies
Publication Date: June 6, 2024
Full Text: Download Resource
Description (excerpt):
This brief, the second in a series of three, builds upon the first’s findings on refining and processing and examines the production of active materials—the next step of the lithium-ion battery supply chain. The paper first outlines the technical steps necessary for active materials production—namely, mixing, coating, calendaring, and slitting, as well as production of the separator and electrolytes. It then describes current U.S. capabilities at this stage of the supply chain relative to the global market, considering the country’s nearshoring and onshoring ambitions.
In addition, the brief addresses the Biden administration’s incentives, such as tax credits included in the Inflation Reduction Act of 2022 (IRA) and grants programs enabled by the Infrastructure Investment and Jobs Act (IIJA). It continues with an examination of different regulations and their potential impact on the ability of lithium-ion battery input manufacturers to scale up their capabilities in the face of growing demand. Lastly, the report unpacks recent policy recommendations from Congress relevant to lithium-ion battery nearshoring considerations.