Summary
- Synthetic graphite factory in Tennessee funded by the 2021 Bipartisan Infrastructure Law is attracting domestic EV supply chain stakeholders
- Graphite has been essential for EV battery electrodes since the early 2000s, but other alternative battery formulas are emerging slowly
- Concerns exist over China’s dominance in graphite mining and refining for battery manufacturers
- NOVONIX wins a $100 million grant from the Bipartisan Infrastructure Law to establish a synthetic graphite production facility in Tennessee and has secured agreements with Panasonic and Stellantis
- The Loan Programs Office of the Energy Department has played a crucial role in supporting clean tech initiatives like the domestic synthetic graphite industry
Article
After President Joe Biden leaves office in January, a messy situation will be left for fossil energy stakeholders to address, including a new synthetic graphite factory in Tennessee funded by the 2021 Bipartisan Infrastructure Law. Graphite is a crucial material for EV battery electrodes, and the transition to a more diversified EV supply chain will take time due to the reliance on China for graphite mining and refining. With an expected increase in EV sales, there is a growing demand for graphite, leading to the development of a domestic synthetic graphite industry in the US.
Synthetic graphite production offers a way to decrease reliance on international sources, utilizing the US’s abundance of coal and petroleum as precursors. NOVONIX, an Australian company, received a $100 million grant from the Bipartisan Infrastructure Law to establish a synthetic graphite production process in Tennessee, which is expected to reduce carbon intensity compared to conventional methods. Additional federal tax credits and incentives have supported the growth of this industry, encouraging stakeholders to invest in domestic synthetic graphite production.
NOVONIX has made significant progress in setting up its synthetic graphite production facility in Chattanooga, with plans to supply a substantial amount of synthetic graphite to the North American EV supply chain annually. Panasonic Energy has already entered into an off-take agreement for synthetic graphite from this facility. Additionally, automaker Stellantis has committed to purchasing a substantial amount of synthetic graphite over a six-year period, signaling the increasing interest in domestic synthetic graphite within the EV industry.
The involvement of various stakeholders in the EV supply chain, including NOVONIX, Panasonic, and Stellantis, demonstrates the growing importance of domestic synthetic graphite production for the EV industry. Investments in new production facilities and partnerships with key players underscore the potential for the US to become a significant player in the global EV supply chain. The Federal government’s support through incentives and grants has been instrumental in driving this growth and fostering a more sustainable and reliable EV supply chain.
The Department of Energy’s Loan Programs Office has been pivotal in supporting clean tech startups and legacy firms with new technologies, including those in the EV supply chain. The program aims to onshore and reshore the automotive supply chain in the US as part of decarbonization efforts. With additional loan authority provided under the Inflation Reduction Act, companies like NOVONIX are well-positioned to capitalize on federal support for their synthetic graphite production facilities. The involvement of key players in the EV industry signals a shift towards a more sustainable and domestically sourced supply chain.
As the transition to cleaner transportation technologies accelerates, the development of a domestic synthetic graphite industry is seen as a critical component of the EV supply chain. With growing demand for graphite in EV batteries, the US has the potential to become a major player in graphite production, reducing reliance on international sources. By leveraging federal support and partnerships with key stakeholders, companies like NOVONIX are driving the growth of domestic synthetic graphite production, supporting the transition towards a more sustainable and resilient EV supply chain.
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