Energy Supply Chain

In our talk with Ashley Zumwalt Forbes, U.S. Deputy Director for Batteries & Critical Materials, she highlighted the challenges posed by China’s control over 70-90% of the battery critical materials supply chain. This dominance creates a vertically integrated monopoly, making it difficult for the U.S. to secure a separate supply chain. To counter this, the U.S. Department of Energy is focusing on bridging the gap to commercialization through $20 billion in non-dilutive equity, grants, and tax credits aimed at establishing a competitive and secure supply chain.

Zumwalt Forbes emphasized the impressive progress and potential within the American battery industry, driven by ingenuity and innovation. She discussed the clusters of emerging projects and the impact of the 30d tax credit, which creates a two-tiered market for materials and necessitates sourcing from domestic or allied entities. She also highlighted the pivotal role of copper in the energy transition, given its necessity for electrification, and the importance of significant capital inflow and long-term investments in exploration and mining.

The U.S. Department of Energy is committed to addressing unit economics and attracting investors to build secure supply chain facilities. Zumwalt Forbes underscored the need for domestic or allied sources of critical minerals, the focus on battery recycling and sustainability, and the urgency to act now. She encouraged companies to stay updated on new funding opportunities and to apply for government support, stressing the critical importance of developing a secure and environmentally responsible supply chain for the future.