SMI

The latest on how the "China Playbook" is squeezing the U.S. battery supply chain: The Information is out with a new article by Steve LeVine highlighting a series of recent developments that underscore the need for additional investments and incentives to build out a robust supply chain for critical battery materials if we are to compete with China in the EV market over the long haul. It recounts how Huntsman Corporation scrapped a $50 million investment in Texas to expand the production of ethylene carbonate, a primary ingredient in electric vehicle batteries, when China flooded the market with exports. This year the U.S. Department of the Treasury also exempted Chinese chemicals like ethylene carbonate from restrictions designed to keep them out of U.S. EVs after determining few U.S. companies qualified for tax credits—and even fewer if the ethylene carbonate had to be manufactured here. The article also cited a $100 million grant from the U.S. Department of Energy (DOE) to BATT founding member Orbia Fluor & Energy Materials to build a plant in Louisiana to manufacture lithium hexafluorophosphate, or LiPF6, a salt used in almost all EV battery electrolytes. The company has since seen LiPF6 prices plummet, as subsidies enable Chinese companies to sell the salt at lower prices. Orbia still plans to build the LiPF6 plant next year. But it will be advocating, along with other BATT coalition members, for greater incentives for U.S. automakers to buy from American suppliers and for tighter requirements to limit foreign sources. “The current situation is not sustainable—not for us, not for anybody in this country," said Carl Thoemmes, Orbia's head of business development. "Something has to be done to address the current unfair practices that are occurring with Chinese import materials."

Pioneering space start-up Interlune has the historic vision and the technical roadmap to be the first private entity to harvest resources on the moon -- to improve life on Earth and open the door to a vibrant and sustainable in-space economy. Rob Meyerson and Indra Hornsby have set the course with a series of founding principles that are much more than slogans. They are guiding Interlune's actions each and every day as it enlists the right people with the necessary skills, knowledge and wisdom to harvest Helium-3 on the lunar surface. "The entire premise of Interlune -- harvesting natural resources from space to benefit humanity -- has never been done before," they write. "To achieve this mission, we must train our brains to think at massive scale about big solutions, big breakthroughs, and big collaborations. Details matter, but there’s no room for small thinking here." Read their latest blog post:

Another great issue! Check it out. My editorial focuses on our current efforts to expose unfair trade and penalize violators. We need a strong and vibrant commercial forging industry to be available for all the DOD forging needs.

It's been a busy summer for SMI. We launched a new battery industry coalition dedicated to building a more robust domestic supply for critical materials and recycling and helped secure new investments in domestic manufacturing and a range of innovative solutions that support national security, clean energy, and public health. Catch up with the latest edition of A Capitol View. https://lnkd.in/eqqjzkTy

We are excited to announce that Sicona Battery Technologies is now a charter member of the Battery Advocacy for Technology Transformation Coalition (BATT Coalition ). This strategic alliance represents a significant milestone in our commitment to enhancing the US domestic battery supply chain and promoting sustainable energy solutions. By joining the BATT Coalition, Sicona aims to contribute to policy initiatives that support investment in critical materials and recycling technologies, fostering a robust and independent supply chain. Our focus on innovation and cutting-edge battery technologies aligns perfectly with the coalition's goals, ensuring that the U.S. remains at the forefront of the global clean energy transition. Together with our partners in the BATT Coalition, we look forward to driving forward a new era of advanced manufacturing and job creation, while securing a sustainable future for generations to come. #BatteryTechnology #CleanEnergy #Sustainability #Innovation #AdvancedManufacturing #PolicyAdvocacy #BATTcoalition You can read more about Sicona's US expansion 👇 https://lnkd.in/gMv5tdYW

BATT launch in the news: "Domestic companies in the battery supply chain are launching a new industry coalition that seeks stronger support for U.S. projects," aiming "to occupy a unique lobbying role in the crowded space," Axios' Ben Geman reports. "Former high-level Energy Department officials steeped in battery and materials policy are running the effort. It aims to infuse lobbying around critical materials and recycling with deep technical input. The group is seeking changes to climate law policies and more trade protections." BATT "supports stricter implementing rules around the IRA goal to disqualify materials from 'foreign entities of concern' — that means China — from U.S. EV subsidies," the report continues. "Another goal: using tariffs to provide domestic materials and components a 'level playing field.'" "The 2022 climate law and other policies have unprecedented support for building a domestic and ally-based supply chain," Axios adds. "But China dominates not only mining, but also refining of many minerals and production of anodes, cathodes and other components. BATT argues that the law and some implementing rules should better support U.S. projects." BATT Strategy Director David Howell told Axios: "We're not ... looking to tear down the current policies. It's really to fill in the gaps, to identify the gaps, to fill those in with additional policy, and then bolster the overall policy portfolio around the battery supply chain." https://lnkd.in/eKNsbvkZ

We have liftoff! Leading companies in battery manufacturing have formed the Battery Advocacy for Technology Transition (BATT) Coalition to promote policies that protect investments in a robust domestic supply for critical materials and recycling and ensure the nation’s historic downpayment on a clean energy economy pays dividends for decades to come. The coalition will leverage the collective voice of foremost innovators across the supply chain — from upstream producers of raw materials, makers of discrete battery components, and battery recycling — in Congress, the executive branch, and with other stakeholders to fortify our industrial independence and safeguard our national security. Charter members include Mitra Chem, Xerion Advanced Battery Corp., Orbia Fluor & Energy Materials, Sicona Battery Technologies, NanoGraf Corporation, and Novalith.  “The United States is primed to become a global leader in advanced battery development and manufacturing,” said Mitra Chem CEO and Co-Founder Vivas Kumar. “For our technology and innovation to flourish it’s essential for the U.S. government to bolster the private sector through targeted policies that reduce our reliance on a fragile supply chain dominated by China. Together we can usher in a new phase of high value manufacturing jobs here at home, and we are excited to be part of this essential effort.” “Our technology can compete in a free and open market, but unfortunately the domestic battery materials supply chain is up against a foreign supply chain that has benefited from decades of support from foreign governments,” added Orbia Vice President for Growth and Technology Miki Oljaca. “Policy makers need to understand the depth and breadth of these on-going challenges for domestic manufacturers and what is needed to support this critical U.S. industry. We are excited to move that discussion forward.”  The coalition boasts a leadership team with deep experience in the Department of Energy and on Capitol Hill, including Samm Gillard; David Howell; Drew Ronneberg; and Christopher Michelbacher. “We believe the federal government can and must do more to protect and promote the domestic battery materials supply chain if America is going to truly lead the clean energy revolution,” said Gillard, Executive Director of the BATT Coalition. “The series of historic investments, tax incentives, and other policies implemented in recent years will only take us so far unless those measures are expanded and sharpened.”   “After over two years of bipartisan accomplishments, we are at a crossroads for the domestic battery supply chain,” said Howell, BATT Strategy Director. “If we rest on our laurels and fail to take further steps to expand and improve upon these efforts, we risk taking two steps forward and one step back. And China will continue to undermine our domestic achievements.” Learn more: https://lnkd.in/eMsgHR4W

If you want to be at the epicenter of what's next in defense manufacturing and innovation, don’t miss the National Defense Industrial Association - (NDIA)'s Emerging Technologies for Defense conference and expo in DC next week. Hosted by NDIA's ETI | Emerging Technologies Institute, it draws senior leaders from government and industry, including Heidi Shyu, undersecretary of defense for research and engineering. SMI is proud to be supporting several of the presenters, including Bill Marinelli, CEO of Physical Sciences Inc., who will be discussing the "The Role of Technology Platforms in Transitioning SBIR and STTR Developed Technology," and Matt Karesh of Velo3D, who will deliver a talk titled "Building Distributed Supply Chains for Mission-critical Defense Parts With Additive Manufacturing." Find out more: https://lnkd.in/egjVxEFm

Shout out to Derek Tournear, director of the Space Development Agency, for an illuminating conversation this week at AIAA's ASCEND in Las Vegas on how the five-year-old agency is breaking the mold in space acquisition. With the initial launches of constellations of small communications and missile warning satellites in low-Earth orbit, SDA has proven that the Pentagon can adopt more commercial models. But now come some different challenges: ensuring a sustained supply chain to meet the demand for new and improved satellites every two years, and leveraging these new capabilities in military operations. Tournear struck a cautiously optimistic tone that the growing number of SDA contactors and bidders - including Lockheed Martin, York Space Systems LLC, SpaceX, L3 Technologies, Northrop Grumman, Ball Aerospace, and General Dynamics - is a positive sign that industry is in it for the long haul. He said one major focus now is considering additional steps to ensure sufficient payload processing facilities to meet the agency's ambitious launch schedule. And through the agency's Warfighter Integration Cell, SDA is beginning to demonstrate how these new capabilities can influence the fight. Bottom line: Tournear is confident but also acutely aware that the next few years will be crucial in proving whether the model can really work long term. As a recent assessment from The Aerospace Corporation concluded: "Congress and United States Department of Defense leadership have been supportive of the agency and have given it tremendous budgetary and acquisition flexibility. Whether SDA continues to receive flexibility may depend on its operational success as it pursues quantities and time frames never before achieved in defense space acquisition." Read the Aerospace report here: https://lnkd.in/eqYiuKsq

Next up at AIAA ASCEND: What is Your Why: Defining and Communicating the Strategy of Space Thrilled to be back with Dan Dumbacher Shawna Pandya, MD and Emma M. Louden. Stay tuned for a recording of our session.