Li-Bridge alliance report outlines plan for accelerating production of lithium-based batteries
Li-Bridge, a public-private alliance representing the U.S. battery ecosystem, issued a report last week outlining a plan to accelerate the creation of a domestic manufacturing base and supply chain for lithium-based batteries.
The report — called Building a Robust and Resilient U.S. Lithium Battery Supply Chain — includes 26 recommended actions to bolster the domestic lithium battery industry. Key recommendations in the report include the establishment of a buying consortium for raw energy materials, the development of a system of shared pilot lines to speed the commercialization of new battery technologies, significant investment in battery industry workforce training, and permitting reform.
“As the Li-Bridge facilitator between private industry and the Federal Consortium for Advanced Batteries, Argonne believes adoption of the report’s recommended actions can set the nation on a path for battery manufacturing and supply chain success,” Paul Kearns, director of the Argonne National Laboratory, said.
The Li-Bridge alliance was put together by the U.S. Department of Energy (DOE) in 2021 and is managed by Argonne National Laboratory.
The report complements recent government initiatives designed to strengthen the country’s battery and semiconductor industries — the Inflation Reduction Act (IRA), the Infrastructure Investment and Jobs Act, and the CHIPS and Science Act.
“The Biden-Harris administration investments in battery manufacturing and supply chain have set our country on a path towards a transportation system that provides cleaner and more accessible mobility options, provides good-paying jobs for American workers, and secures our national energy independence,” Deputy U.S. Energy Secretary David Turk said.
Li-Bridge is spearheaded by three industry trade groups — NAATBatt International, the New York Battery and Energy Storage Technology (NY-BESTTM) Consortium, and New Energy Nexus. It also has active involvement from DOE national labs and Boston Consulting Group.
The report said lithium-based batteries and the devices they power are major contributors to economic growth in the 21st century on par with semiconductors. If the U.S. cannot establish a secure and stable supply chain for lithium battery technology within its borders, other countries will enjoy the economic growth and job creation that lithium battery technology will create, the report said. Currently, roughly 76 percent of lithium battery cells and the large majority of cell components are made in China.
Lithium-based batteries are also critical for achieving U.S. climate objectives. Without reliable access to lithium battery technology, the U.S. has no chance of meeting its 2050 net-zero carbon emissions goal, the report indicated. Also, with U.S. defense applications increasingly dependent on lithium-based batteries, there are national security risks in relying on batteries and battery components made abroad.
“Although we are starting to see activity in the domestic battery manufacturing sector thanks in large part to the Bipartisan Infrastructure Law and the IRA, U.S. industry is still 10 to 20 years behind Asia, and about five years behind Europe, in commercializing manufacturing of this critical technology,” James Greenberger, executive director at NAATBatt International, said.
The report said that the U.S. will not achieve complete lithium battery supply chain independence by 2030, but it can capture 60 percent of the economic value consumed by domestic demand for lithium batteries by that year. That would generate $33 billion in revenue and create 100,000 jobs.
