The global competition surrounding electric cars and battery technology has significant economic implications for automakers, small battery startups, and consumers. As the era of combustion engines comes to an end, car buyers will have a wide variety of electric cars to choose from, each using different types of batteries. The chemical composition of batteries, once a technical matter for engineers, is now a major topic of discussion in the corporate offices of major automakers like General Motors, Toyota, Ford Motor, and Volkswagen, as well as in government discussions. These companies are investing in startups that are revolutionizing battery technology in order to stay competitive in the electric car revolution. Mastering battery technology is crucial for automakers to succeed and avoid being surpassed by companies like Tesla in the electric car market. Batteries will not only impact the price of new cars but could also become a defining feature of vehicles. Similar to how consumers used to focus on features like megapixels in cameras or processing speeds in computer chips, the quality of batteries will now be a crucial factor in the decision-making process for purchasing cars and trucks. According to Hau Thai-Tang from Ford Motor, the battery in electric vehicles will be the new distinguishing factor among brands. Automakers are recognizing the importance of batteries in the fight against climate change, as they help transition vehicles and the power sector away from fossil fuels. As demand for electric cars rises, companies are working on improving battery technology to make them more affordable and efficient. Currently, batteries account for a significant portion of the cost of electric cars, ranging from one-quarter to one-third. The majority of these batteries are produced by a small number of Asian companies, including those used by Tesla. Despite being a leading electric car manufacturer, Tesla still depends on Asian suppliers and is looking to increase their in-house manufacturing. President Joe Biden recently urged companies to shift more of the battery supply chain to the United States. The recent invasion of Ukraine by Russia highlighted the strategic significance of these efforts. Volkswagen had to temporarily close its main electric vehicle factory in Germany due to disruptions in the supply of parts from western Ukraine. Other auto giants like Stellantis are investing heavily in startups such as Factorial Energy, a small company in Woburn, near Boston. Factorial is working on a new battery that charges faster, holds more energy, and is less likely to overheat than current batteries. The company's executives are focused on creating a safer battery and improving people's lives. High-ranking officials in the Biden administration have stated their intention to assist in improving battery technologies in the United States, as they acknowledge the country's failure to capitalize on domestically created innovations. This has led to the growth of a significant battery industry in China. The Energy Department is exploring options to fund companies involved in battery production or the supply of essential minerals for batteries. There are currently 10 applications pending for funding, totaling over $15 million for battery-related projects. Transportation Secretary Pete Buttigieg highlighted the negative impact of a lack of innovation on his hometown of South Bend, Indiana, which was once the location of the now-defunct Studebaker company. He stated that innovation is crucial for the auto industry's past, present, and future, especially with the potential for America to lead in electric vehicles. The immediate change on the horizon involves the materials used in batteries, with some automakers like Tesla and Ford shifting towards lithium iron phosphate batteries, which are cheaper and more durable than traditional nickel, manganese, and cobalt batteries. Tesla plans to introduce LFP batteries in lower-priced electric vehicles with shorter ranges, while Ford is set to use them in certain trucks for fleet owners under the Ion Boost Pro brand. Ford executive Thai-Tang mentioned that these batteries could be beneficial for delivery services, plumbers, electricians, and landscapers working within a specific area. Ford is collaborating with SK Innovation from Korea for battery production, but aims to shift much of the manufacturing to the United States to minimize geopolitical and logistical costs. However, it is important to note that the LFP battery is not a definitive solution. Vehicles manufactured by Tesla that utilize these batteries have a driving range of approximately 270 miles per charge, while similar models powered by nickel and cobalt batteries can travel about 358 miles. Additionally, LFP batteries may experience power loss in freezing temperatures and take longer to recharge. Ford's upcoming electric F-150 pickup truck, with 200,000 reservations already, will utilize batteries with a higher percentage of energy-dense nickel from SK Innovation. Tesla has already produced 1 million cells for its new "4680" battery, featured in the Model Y crossovers, which CEO Elon Musk claims will provide 16 percent more range due to its unique honeycomb design. In 2020, he stated that something is difficult until it is found, and then it becomes easy. General Motors (GM) asserts that their Ultium battery cell requires 70% less cobalt compared to the cells found in the Chevrolet Bolt electric hatchback. The company has incorporated aluminum into their battery design. The GMC Hummer pickup, recently introduced by GM, is the first vehicle to utilize this battery technology. GM, in collaboration with South Korea's LG Chem, is constructing a $2.3 billion battery plant in Lordstown, Ohio. The United States is currently building at least 13 large battery factories, emphasizing the growing importance of batteries in auto branding. GM is advertising Ultium batteries, highlighting the need for reliability and safety. GM recently recalled the Bolt due to a battery defect that can cause fires. Automakers are looking to reduce their use of cobalt, much of which is sourced from the Congo through Chinese-financed companies or freelance miners, some of whom employ children. Markus Schäfer, a senior Mercedes executive in charge of research and development, expressed concern about potential human rights violations, including child labor and difficult conditions for artisan miners. The auto industry is particularly worried about nickel, as Russia is a key supplier of the metal. A team of approximately 25 government scientists at Oak Ridge National Lab is working on advancing innovations in electric car batteries. They are comparing conventional batteries with an experimental cobalt-free alternative by charging and discharging them over several weeks to assess their performance. Ilias Belharouak, in charge of the Oak Ridge Battery Manufacturing Center, aims to reduce battery costs by up to 50%, extend their range beyond 300 miles, and decrease charge times to 15 minutes or less. The Energy Department has allocated $200 million to fund some of this work, with a "virtual pitchfest" scheduled for next month where battery designers can present ideas to scientists, government officials, and industry executives. Factorial Energy and other US startups like Solid Power and QuantumScape are working to revolutionize battery construction, not just alter their ingredients. Many current batteries use a liquid solution as an electrolyte to facilitate the flow of electricity. In contrast, solid-state batteries do not require a liquid electrolyte, making them lighter, more energy-efficient, and quicker to charge. They also have a lower risk of igniting, reducing the need for cooling equipment. Major car manufacturers are investing heavily in solid-state technology, with Volkswagen backing QuantumScape, a company based in San Jose, California. BMW and Ford are betting on Solid Power, a company located in Louisville, Colorado. General Motors has also invested in SolidEnergy Systems, which originated from the Massachusetts Institute of Technology and is situated in Singapore. The timeline for the arrival of solid-state batteries is uncertain. Stellantis aims to debut mass-market vehicles with these batteries by 2026, while other companies predict broader availability around 2030. The first car manufacturer to offer solid-state batteries will gain a significant edge in the market. Huang, the co-founder of Factorial, mentioned that she and her business partner often work through the night to meet technical goals. She is driven by memories of the polluted air in Shanghai where she grew up and is dedicated to the company's mission of achieving a fossil-free future. Factorial, which has investments from Mercedes-Benz and Hyundai, aims to expand globally despite currently operating on the second floor. Employees in white coats work in laboratories to test prototype cells with a serious focus. Despite the busy activity in the auto industry, there may be challenges in meeting the demand for new batteries due to limitations in mining and processing all the necessary raw materials, especially lithium, according to Andrew Miller, the chief operating officer at Benchmark Minerals Intelligence. Miller expressed uncertainty about where the raw materials will come from for the models and plans announced by battery makers globally over the next three years.