Asia is currently the electric vehicle battery-making hub, and all the top manufacturers are based out of the continent. The U.S. could play catch-up, according to Loup Funds’ Gene Munster.
U.S. Focus: Munster expects EV battery manufacturing to take off in the next decade, the venture capitalist said on Twitter on Tuesday. One reason why U.S. production would grow is that currently, about 99% of EV batteries come from Asia.
The inflation reduction act will pay tax credits of $35/kilowatt-hour for battery cell manufacturers and $10 per KWh for battery module manufacturers, he noted.
“It’s likely that making batteries in the U.S. will be a nicely profitable business for decades to come,” Munster said.
Here’s a compilation of domestic battery manufacturers that could profit from the opportunity:
Albemarle Corporation ALB. The North Carolina-based company is the world's largest provider of lithium, used in battery making.
QuantumScape Corporation QS: This company is developing solid-state batteries that have higher energy density and can be charged faster than lithium-ion batteries.
Romeo Power, Inc. RMO: Romeo Power, which has agreed to be acquired by EV truck manufacturer Nikola Corporation NKLA, is focused on designing and manufacturing lithium-ion battery modules and packs for commercial vehicle applications.
Microvast Holdings, Inc. MVST: Texas-based Microvast makes battery systems for EVs and energy storage systems. The company offers a range of cell chemistries, such as lithium titanate oxide, lithium iron phosphate, and nickel manganese cobalt. It also manufactures battery components.
FREYR Battery FREY: This Norwegian company is working on making green battery cells and proposes to build industry-scale battery cell production in Vaasa, Finland, and the U.S.
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