Giga Factories and Battery Companies

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Aaron Wade
Head of Battery Costs
8h •

Today we are at #NAATBATT! An excellent and timely Bloomberg article on IRA tax credits was just published:
https://lnkd.in/eM-XuXAV

Here the CRU Battery Cost Model illustrates how the percentage of value of critical minerals in an NMC 811 battery changes over time versus the IRA's requirement for where the critical minerals are sourced.

Last year automakers were generally compliant as long as they sourced lithium from the US or Free-Trade-Agreement country. This is relatively easy considering the abundance of lithium from Chile and Australia.

But as the thresholds tighten, they need to look to compliant sourcing also for nickel, cobalt, or graphite - the processing of which which is dominated by China. If material passes through China, the entire tax credit falls apart.

We are in California the rest of the week. Reach out to us to talk about how our tools can help you to design your batteries and structure your supply chains to align with the US IRA!

#inflationreductionact #batterymanufacturing #batterymaterials

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