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Lithium battery manufacturers will be able to count on subsidies from the US government
Now the American market is on the verge of implementing several initiatives aimed at solving key problems with the shortage of semiconductor components and transferring the vehicle fleet to electric traction. Localization of the production of traction batteries is one of the keys to success, and here the country’s authorities will certainly decide to subsidize the construction of enterprises in the United States.
Image source: The Business Journals
In principle, there is no end to those wishing to build an enterprise for the production of lithium batteries in the United States even now. In the case of South Korean manufacturers, there is a particular problem in the form of a patent dispute between SK Innovation and LG Energy Solution. It prevents the first to establish the production of batteries in the United States, although an enterprise in the state of Georgia is already actively under construction, and contracts with Ford and Volkswagen for the supply of batteries have been concluded.
As noted by DigiTimes, citing industry sources, manufacturers of lithium batteries for electric vehicles and stationary energy storage systems will be able to count on government subsidies when building plants in the United States. Tense relations with China may lead to the fact that Chinese-made batteries will be banned in the United States, and South Korean manufacturers will have to satisfy the needs of the American market. LG Energy Solution, SK Innovation and Samsung SDI have started building factories in the United States or already have them, but the presence of government support will allow them to further expand production.
The costs of manufacturing batteries in the United States, according to sources, are quite high, especially when it comes to batteries with iron phosphate (LFP), but the proximity of production to a large sales market should compensate for the costs of building factories and manufacturing batteries. As previously reported, the US authorities intend to involve Canadian companies in the supply of the necessary minerals.