Good morning,
TDK Corporation’s new solid-state battery, with an energy density that’s 100 times greater than what now powers everything from hearing aids to smartwatches, is further proof that battery makers are on the front lines of innovation. Breakthroughs in one category often spur new developments in another, and the Japanese Apple supplier’s new all-ceramic product could spur innovation in other areas.
Batteries are the workhorse of the energy transformation. The speed of innovation reflects how much energy they can store, how quickly they charge, how much they cost to produce, their environmental impact, and how easily we can access the raw materials to make them. Where they are located also matters, of course, as the world’s biggest battery manufacturers, BYD and CATL, happen to be based in China. Both are expected to ship lithium-iron-phosphate (LFP) battery cells that charge from zero to 100% in 10 minutes this year, with CATL’s Shenxing Plus boasting it will give electric vehicles a range of more than 620 miles on a single charge.
In addition to being on the front lines of innovation, Chinese battery makers are also on the front lines of politics. Republicans in Congress have urged Biden to ban CATL imports, for example, arguing that it uses forced labor—a charge CATL denies. (CATL is working with automakers like Tesla and Ford.)
There are a number of other names worth putting on the radar. I recently spoke with Rick Luebbe, CEO and co-founder of Group14 Technologies, a global manufacturer and supplier of advanced silicon battery materials that is working with leading EV makers and consumer electronic cell manufacturers worldwide. “What’s really transformational is the ability to charge really fast,” he notes. “Think about what it does to enhance aviation, heavy trucking, industrial applications, medical devices, consumer electronics and every place we currently use energy storage.”
Luebbe compares the current anxiety about batteries to the anxiety the U.S. faced in the 1970s when it was reliant on foreign oil and prices set by OPEC. Now, the U.S. produces more energy than it consumes, making it a net exporter. That’s the goal of government and private-sector attempts to achieve energy independence. Companies like Group14 have cracked the code on silicon batteries, and there will be more to come. Stay tuned and, as always, I would love to hear your thoughts.
Diane Brady
diane.brady@fortune.com
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